FINWIRES · TerminalLIVE
FINWIRES

Canadian Housing Starts Set to Grind Lower as Construction Headwinds Persist, TD Says

By

Canadian housing starts fell 5% on the month in July to an annualized 229,100 units, adding further downward pressure on residential investment and gross domestic product, according to TD Economics in a note Tuesday.

While construction remains relatively strong in Atlantic Canada, Quebec and the Prairies, supported by rental development, starts are trending lower in British Columbia and remain weak in Ontario, said the bank following data from the Canada Mortgage and Housing Corporation (CMHC) released earlier Tuesday.

The slowdown is expected to persist as homebuilders contend with slower population growth, elevated unsold inventories, rising rental vacancy rates and earlier weakness in pre-construction sales, added TD.

The removal of the HST sales tax on new Ontario housing could provide a boost to demand, but its impact on construction activity is unlikely to be felt until next year and 2028, according to the bank.

Related Articles

International

New Zealand Central Bank Moves to Modernize Outdated Retail Payments System

The Reserve Bank of New Zealand (RBNZ) is exploring ways to modernize the country's outdated retail payments system, which handles an annual payments volume of around NZ$2 trillion, the central bank said Tuesday.Given that scale, even small efficiency improvements can boost national productivity, improve the global competitiveness of local businesses, and strengthen the country's economic resilience, said Assistant Governor Karen Silk.The central bank has created two workstreams to pursue the modernization. The first of them will examine the technical requirements needed to update infrastructure, while the second one will focus on reforming strategic leadership, regulatory coordination, and system governance across the system."Key strategic questions include whether to continue pursuing incremental reform or to undertake structural modernization of the underlying payments infrastructure to build long-term capability and strengthen resilience," the RBNZ said.The central bank is seeking feedback on the issues it has identified through a consultation period that runs until Oct. 27.

^NZ50
International

China's Steel Output Drops in July

China's production of steel fell in July amid weak demand and a slowdown in the construction industry.Crude steel output fell 3.6% year on year to 76.9 million tons during the month, according to Monday data from the National Bureau of Statistics.Between January and July, steel output slipped 3.1% to approximately 577 million tons.The data shows that the steel industry is on track to log the lowest annual total in a decade, according to a Bloomberg News report.

Shanghai Composite^SZSE
International

Australian Consumer Confidence Rises to Highest Level in 24 Weeks, ANZ Says

The ANZ-Roy Morgan Australian Consumer Confidence rose 1.5 points to 76.5 in the week of Aug. 17 to 23, taking confidence to its highest level in 24 weeks, ANZ Research reported Tuesday.The four-week moving average rose 0.2 points to 74.4 points, per the report.The pick-up in confidence was driven by an improvement in householders' confidence in their financial situation, especially over the next year, according to ANZ economist Madeline Dunk. On a four-week moving average basis, confidence amongst renters is at its highest level since January.Compared to households who own their home outright, confidence amongst renters is at its strongest since 2022, Dunk added. The softer confidence amongst homeowners may be linked to the recent downturn in the housing market.Weekly inflation expectations rose to 5.8%, increasing by 0.1 percentage points, while the current financial condition indicator for 12 months increased 3.6 points to 69. The future financial conditions for the next 12 months rose by 5.9 points to 88.3 points.Short-term economic confidence for the next year eased 1.5 points to 68, while medium-term economic confidence for the next five years decreased by 1.9 points to 80.4 points from 82.3.The "time to buy a major household item" subcategory rose 0.9 points to 76.6.

ASX 200