Construction Economic News

Given the increases in mortgage rates that have transpired, significant slides in homebuilding activity are being taken for granted in the United States and Canada. Based on the latest housing starts statistics, this is already underway and clearly apparent in the former more than in the latter. See Graph 8 below, where Canadian housing starts have been moving mostly sideways throughout this year, while U.S. starts have been exhibiting significant declines month to month.

Canada has become much more than a natural resource-based economy.

Megaprojects Take a Back Seat in November ConstructConnect announced today that November 2022’s volume of construction starts, excluding residential work, was $31.1 billion, a decline of -36.3% compared with October’s figure of $48.9 billion (originally reported as $47.5 billion; the difference coming mainly in the multi-unit residential subcategory of starts).

The accompanying table records the top 10 project starts in the United States for November 2022.

Clichés are often true and it is the case that a picture can be worth a thousand words.

Much of the world may be taking a break as yearend approaches, but that doesn’t mean the economy is kicking back with eggnog and gingerbread cookies. Public and private sector data releases are pouring forth regardless, and here are some of the nuggets to be gleaned.

As the United States added 263,000 jobs in November, Canada stood by and watched in awe. The change in total employment north of the border in the latest month, according to Statistics Canada, was only +10,000 jobs.

A Change Has Come Over Stock Markets Earlier this year, a terrible gloom descended on stock markets both at home and internationally. Fears of what rising interest rates would do to economies near and far sent investors hurrying to divest their holdings. The exiting was especially brutal from March through September.

Some of the factors that have been driving rapid price inflation are relenting. The higher interest rates have pricked the balloon of excess consumer demand. Commodity price changes that were once hot have now cooled. Many of the blockages in supply chains have been relieved through workarounds and by hiring more freight haulers and other logistical staff.

Once again, there was little wrong with the U.S. labor market picture in the just-released monthly update from the Bureau of Labor Statistics. November’s jobs creation figure was +263,000, not far off what it’s been in each of the three preceding months.