Amid a recovering economy, the housing sector showed signs of recovery after four straight months of decline.
In January, Canadian GDP saw its best gains in 8 months, growing by 0.3% from December and outpacing an earlier prediction of 0.1% among economists surveyed by Bloomberg. On an annual basis, GDP broadened by 1.6%.
“Overall, a better than expected start to Q1 after a near-zero growth rate in Q4, and reason enough for the Bank of Canada to hang on to its hopes that the growth stall late last year will prove temporary,” CIBC Capital Markets chief economist Avery Shenfeld wrote in an investor note, as quoted by BNN Bloomberg.
Statistics Canada said that January registered increases for 18 of 20 industrial sectors surveyed.
StatsCan noted that real estate and brokerages blazed upward with 4.1% growth, although February might see some reversal of the trend, while builders enjoyed a 1.9% performance increase in January, propelled by 3.1% growth in residential activity. This is the first gain that the construction sector had in eight months, as well as the largest in nearly 6 years.
Source Credit: Ephraim Vecina (mortgagebrokernews.ca)
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