Canadian housing starts likely to have decelerated in July

Canada’s housing starts are likely to have slowed in July. According to a TD Economics research report, the housing starts are expected to have decelerated to a pace of 205k, reversing some of the rebound from the prior month. While there is less conviction without building permits for June, the magnitude of last month’s rebound in construction activity appears unwarranted given languishing resale activity, stated TD Economics.

The more volatile multi-unit component is expected to have driven the headline result in the month, while the single-family housing starts are expected to have stayed stable around 65k. The forecast for 205k reflects a modest slowdown from the six-month moving average, currently 215k.

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