6.10.13: Jump in housing starts signals boost for wider economy

6.10.13: Jump in housing starts signals boost for wider economy - Financial Post

Sign up for the Executive Summary email briefing to get the news delivered straight to your inbox first thing in the morning. Canadian housing starts jumped much more than expected in May from April, the Canada Mortgage and Housing Corp said on Monday, in the latest sign that the broader economy is gaining momentum in the second quarter. The seasonally adjusted annualized rate of housing starts was 200,178 units in May, an increase from 175,922 in April. The April figure was revised upward. Analysts polled by Reuters had expected 178,100 starts in May. The housing starts data was the most recent report to suggest Canadian economic growth is picking up after struggling in the second half of 2012. A separate report on Friday showed the economy added 95,000 jobs in May, the second-biggest gain in 37 years. With the pickup in starts, residential construction may contribute to Canadian economic growth in the second quarter for the first time in four quarters, wrote Krishen Rangasamy, senior economist with National Bank.

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Canadian housing starts jumped much more than expected in May from April, the Canada Mortgage and Housing Corp said on Monday, in the latest sign that the broader economy is gaining momentum in the second quarter