Economic Insights
Recent Developments in the Canadian Economy: Fall 2018

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This article in the Economic Insights series provides users with an integrated summary of recent changes in output, employment, household demand, international trade and prices. Organized as a statistical summary of major indicators, the report is designed to inform about recent developments in the Canadian economy, highlighting major changes in the economic data during the first half of 2018 and into the summer months. Unless otherwise noted, the tabulations presented in this report are based on seasonally adjusted data available on October 19, 2018.

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Overview

Following a modest gain to start the year, economic growth accelerated in the second quarter of 2018 as exports and household spending strengthened. Non-residential business investment contributed to growth in both quarters, and has trended higher since early 2017. Investment in housing was down in the first half of 2018 owing to lower activity in resale markets.

Higher output in construction and oil and gas extraction supported goods production during the first half of 2018. Oil and gas extraction strengthened in the second quarter, contributing to increases in business productivity and capacity utilization as energy exports, supported by higher prices and volumes, continued to expand.  

Employment growth slowed during the first half of 2018 as gains in full-time work were offset by part-time losses. Following sizable gains in the second half of last year, the number of private sector employees declined in the first six months of 2018. Employment among core-age workers was little changed. More recently, employment increased in the third quarter on gains in part-time work and among private-sector employees. 

Consumer price inflation continued to increase in the first half, rising to 2.5% in June before accelerating to 3.0% in July, the largest headline rate since 2011. Higher gas prices contributed substantially to the stronger pace of consumer inflation into mid-year. Consumer price inflation decelerated in August and September.

Overall, the pace of real GDP growth, measured year-over-year, has slowed since mid-2017, edging down to 2.4% in June. Annual employment growth also trended lower, slowing to 1.2% at mid-year. The positive gap between output growth and employment growth has remained relatively stable over 2018 to date (Chart 1).^{Note 1}

Data table for Chart 1



Data table for chart 1
Table summary
This table displays the results of Data table for chart 1 Real gross domestic product and Employment, calculated using year-over-year change (percent) units of measure (appearing as column headers).

	Real gross domestic product	Employment
	year-over-year change (percent)
2007
January	1.4	2.5
February	1.7	2.4
March	1.8	2.3
April	1.9	2.1
May	2.3	1.7
June	2.8	2.0
July	2.6	2.3
August	2.8	2.3
September	2.7	2.4
October	2.6	2.6
November	2.5	2.5
December	1.4	2.2
2008
January	2.0	2.0
February	1.3	2.1
March	1.2	1.8
April	1.2	2.0
May	0.8	1.8
June	0.7	1.5
July	1.1	1.1
August	0.7	1.2
September	0.9	1.3
October	0.7	1.1
November	-0.4	0.3
December	-1.4	0.1
2009
January	-2.2	-0.8
February	-2.6	-1.3
March	-3.5	-1.4
April	-4.0	-1.7
May	-4.1	-1.9
June	-4.2	-1.9
July	-4.4	-1.9
August	-4.4	-1.9
September	-3.7	-2.1
October	-3.5	-2.2
November	-1.9	-1.1
December	-0.3	-1.0
2010
January	0.8	0.0
February	1.9	0.4
March	3.2	0.6
April	3.4	1.3
May	4.0	1.6
June	4.1	2.1
July	4.1	2.0
August	4.5	2.1
September	3.7	1.7
October	4.1	1.8
November	3.9	1.5
December	4.4	1.8
2011
January	4.0	1.9
February	3.3	1.8
March	3.1	1.8
April	3.3	1.6
May	2.6	1.4
June	2.8	1.2
July	3.4	1.4
August	3.6	1.5
September	3.9	1.7
October	3.4	1.4
November	3.1	1.2
December	2.9	1.2
2012
January	2.6	0.7
February	2.5	0.7
March	2.4	1.1
April	2.7	1.5
May	2.9	1.4
June	2.5	1.3
July	2.1	1.0
August	1.3	1.2
September	1.0	1.3
October	1.0	1.5
November	1.2	1.7
December	0.7	1.8
2013
January	1.2	2.0
February	1.8	2.2
March	2.0	1.5
April	2.0	1.1
May	2.3	1.5
June	1.8	1.4
July	2.2	1.5
August	2.8	1.4
September	3.2	1.2
October	3.9	1.2
November	3.7	1.0
December	3.3	0.7
2014
January	2.8	0.7
February	3.0	0.6
March	2.8	0.9
April	3.0	0.7
May	3.2	0.4
June	3.9	0.5
July	3.3	0.7
August	2.6	0.4
September	2.6	0.5
October	2.5	0.8
November	2.2	0.7
December	2.8	0.6
2015
January	2.4	0.7
February	1.8	0.8
March	1.6	0.8
April	1.1	0.8
May	0.4	1.1
June	0.5	1.0
July	0.8	0.9
August	1.4	1.1
September	0.5	0.9
October	0.1	0.7
November	0.5	0.7
December	0.4	0.9
2016
January	1.3	0.7
February	1.3	0.6
March	1.1	0.7
April	1.3	0.8
May	0.7	0.5
June	0.9	0.6
July	1.2	0.4
August	1.1	0.5
September	1.9	0.9
October	1.8	1.0
November	1.8	1.1
December	2.1	1.2
2017
January	2.0	1.5
February	2.3	1.6
March	2.8	1.5
April	3.2	1.6
May	4.4	1.8
June	4.1	2.0
July	3.7	2.2
August	3.5	2.1
September	3.4	1.8
October	3.5	1.7
November	3.5	2.2
December	3.5	2.3
2018
January	2.8	1.6
February	3.0	1.5
March	3.0	1.6
April	2.6	1.5
May	2.7	1.3
June	2.4	1.2
July	2.4	1.3
August	Note ...: not applicable	0.9
September	Note ...: not applicable	1.2
Sources: Statistics Canada, tables 36-10-0434-01 and 14-10-0287-01.

Economic growth strengthened as exports advanced

Economic growth accelerated in the second quarter of 2018, as output expanded at the fastest pace since the first half of last year. Real GDP rose 0.7% in the second quarter, following a 0.4% gain in the first.

Higher exports were the main contributor to stronger growth in the second quarter of 2018, as export volumes expanded at their fastest pace in four years (Chart 2). Household spending also accelerated, though the pace of spending remained well below levels observed during the first half of last year. Non-residential business investment slowed in the second quarter, after a notable gain to start the year as investment outlays continued to recover from lower levels in 2015 and 2016. Residential structures edged up in the second quarter, after weighing on growth in the first.

In the United States, real GDP rose 1.0% in the second quarter of 2018, up from 0.5% earlier in the year, as household spending and exports strengthened. Economic growth in the United States has outpaced growth in Canada since mid-2017.

Data table for Chart 2



Data table for chart 2
Table summary
This table displays the results of Data table for chart 2 Q1 2018 and Q2 2018, calculated using percentage point contribution units of measure (appearing as column headers).

	Q1 2018	Q2 2018
	percentage point contribution
Gross domestic product at market prices	0.36	0.71
Household spending	0.14	0.37
Residential structures	-0.21	0.02
Non-residential business investment	0.26	0.05
Exports	0.18	0.91
Imports	-0.35	-0.53
Notes: Data on gross domestic product (GDP) are quarterly growth rates; all other data are percentage-point contributions to the the quarterly growth in real GDP. For additional data on these contributions, see the table noted below. Non-residential business investment includes spending on non-residential structures and machinery and equipment. Source: Statistics Canada, table 36-10-0104-01.

The volume of goods exported from Canada rose 3.6% in the second quarter, after edging up 0.3% in the first. Energy volumes increased by 5.6% in the second, following a similar gain to start the year, as exports of crude oil and crude bitumen, natural gas, and refined petroleum products all advanced. Higher volumes of consumer goods and aircraft also contributed to stronger exports in the second quarter (Chart 3).  

Imports rose 1.6% in the second quarter, following a 1.0% gain in the first. Import volumes have increased for six consecutive quarters. Refined petroleum products led the growth in the second quarter, as imports rose to offset lower volumes at domestic petroleum refineries due to maintenance activities. Imports of basic and industrial chemicals and other transportation equipment and parts also contributed to growth in the second quarter.

Data table for Chart 3



Data table for chart 3
Table summary
This table displays the results of Data table for chart 3 Household expenditure, Government current expenditure, Non-residential business investment, Goods exports and Housing, calculated using index (Q1 2007=100) units of measure (appearing as column headers).

	Household expenditure	Government current expenditure	Non-residential business investment	Goods exports	Housing
	index (Q1 2007=100)
2007
Q1	100.0	100.0	100.0	100.0	100.0
Q2	101.5	100.5	100.5	101.6	100.6
Q3	102.4	101.9	100.9	99.7	100.3
Q4	104.3	101.9	102.7	96.9	100.7
2008
Q1	105.1	102.8	106.4	95.5	99.5
Q2	105.2	105.1	106.6	96.3	97.2
Q3	105.3	105.0	106.6	95.2	95.0
Q4	104.0	106.5	101.3	89.9	89.5
2009
Q1	103.7	106.6	85.7	81.4	83.7
Q2	104.5	107.4	82.1	77.3	86.7
Q3	105.7	108.0	82.8	80.1	90.2
Q4	106.4	108.8	85.2	82.1	95.8
2010
Q1	107.6	109.8	89.8	84.0	98.5
Q2	108.5	109.7	94.1	87.3	97.3
Q3	109.4	110.1	97.6	87.1	95.5
Q4	110.4	110.8	102.5	89.5	94.8
2011
Q1	110.6	110.9	105.4	89.8	96.8
Q2	111.1	111.4	108.0	87.7	96.6
Q3	111.5	111.8	108.4	93.3	99.1
Q4	112.2	112.1	111.5	94.5	100.1
2012
Q1	112.9	112.2	114.2	94.1	104.4
Q2	113.0	111.9	117.8	93.9	103.9
Q3	113.7	112.7	118.1	93.2	103.1
Q4	114.3	112.6	120.6	93.1	103.0
2013
Q1	115.0	111.5	122.5	95.2	102.3
Q2	116.0	111.0	123.7	96.8	104.0
Q3	116.9	111.5	124.5	95.9	103.4
Q4	117.7	112.2	126.4	97.4	103.3
2014
Q1	118.0	112.4	127.7	96.2	102.2
Q2	119.2	112.1	128.9	103.1	104.8
Q3	120.1	112.2	130.8	104.6	107.3
Q4	120.9	111.8	133.4	104.1	107.7
2015
Q1	121.0	113.5	121.8	103.2	108.5
Q2	121.6	113.4	117.2	105.4	108.7
Q3	122.4	114.2	112.3	107.2	110.1
Q4	123.2	114.5	110.6	106.3	110.6
2016
Q1	123.7	115.7	106.4	108.4	112.8
Q2	124.4	116.8	104.5	103.6	113.4
Q3	125.3	116.5	106.4	106.0	112.6
Q4	126.4	116.9	101.4	106.2	113.8
2017
Q1	127.6	118.2	104.8	107.0	115.8
Q2	129.0	118.5	106.7	108.7	115.4
Q3	130.0	119.5	108.3	105.2	115.4
Q4	130.6	120.6	110.4	106.1	119.1
2018
Q1	131.0	121.4	113.4	106.4	115.9
Q2	131.8	121.9	113.9	110.2	116.2
Note: Q1=first quarter. Source: Statistics Canada, table 36-10-0104-01.

Household spending accelerated following slower growth

Household spending rose 0.6% in the second quarter, following a 0.3% gain in the first. Stronger spending in the second followed three consecutive quarters during which the pace of household spending had slowed. Higher outlays on insurance and financial services, household furnishings, and recreation and culture supported growth in the second quarter.   

Business investment advanced at a slower pace

Business spending on non-residential structures and machinery and equipment (M&E) rose 0.5% in the second quarter, following a 2.7% gain in the first. Combined business outlays on structures and machinery and equipment have increased for six consecutive quarters, after trending lower in 2015 and 2016 as oil prices declined. Combined outlays on structures and M&E in the second quarter remain 15% below peak levels at the end of 2014 (Chart 4).

Data table for Chart 4



Data table for chart 4
Table summary
This table displays the results of Data table for chart 4 Total business gross fixed capital formation, Residential structures, Non-residential structures, Machinery and equipment and Intellectual property products, calculated using index (Q1 2007=100) units of measure (appearing as column headers).

	Total business gross fixed capital formation	Residential structures	Non-residential structures	Machinery and equipment	Intellectual property products
	index (Q1 2007=100)
2007
Q1	100.0	100.0	100.0	100.0	100.0
Q2	100.6	100.6	99.8	101.3	100.7
Q3	100.8	100.3	100.2	101.6	102.1
Q4	102.1	100.7	100.5	105.0	104.5
2008
Q1	104.0	99.5	107.2	105.4	107.6
Q2	103.3	97.2	108.7	104.1	107.6
Q3	102.2	95.0	109.3	103.3	105.8
Q4	96.8	89.5	106.6	95.3	100.1
2009
Q1	85.1	83.7	91.8	79.1	88.0
Q2	83.9	86.7	85.7	77.9	85.4
Q3	85.5	90.2	84.9	80.3	85.6
Q4	89.0	95.8	85.7	84.3	87.7
2010
Q1	92.9	98.5	93.9	84.9	91.8
Q2	95.1	97.3	98.6	88.8	95.6
Q3	96.5	95.5	104.7	89.2	97.6
Q4	98.8	94.8	111.2	92.1	97.7
2011
Q1	100.7	96.8	115.5	93.3	95.6
Q2	102.6	96.6	114.6	100.2	101.0
Q3	104.1	99.1	119.5	95.0	104.0
Q4	106.1	100.1	124.0	96.5	104.1
2012
Q1	109.1	104.4	127.3	98.3	104.7
Q2	110.3	103.9	133.1	99.1	99.8
Q3	110.2	103.1	133.7	99.0	100.7
Q4	111.4	103.0	138.1	99.1	99.7
2013
Q1	112.2	102.3	141.0	99.7	100.3
Q2	113.1	104.0	143.0	99.8	97.7
Q3	113.4	103.4	146.1	97.8	98.9
Q4	114.4	103.3	147.4	100.4	99.1
2014
Q1	114.8	102.2	151.0	98.7	100.2
Q2	116.2	104.8	152.2	100.1	98.5
Q3	118.0	107.3	154.0	101.9	97.8
Q4	119.8	107.7	156.9	104.1	100.8
2015
Q1	113.2	108.5	140.8	98.2	92.8
Q2	110.7	108.7	134.9	95.2	91.3
Q3	108.5	110.1	129.5	91.0	89.4
Q4	107.9	110.6	123.9	93.8	90.6
2016
Q1	106.2	112.8	118.5	91.1	88.0
Q2	105.4	113.4	114.3	91.8	87.7
Q3	105.6	112.6	122.2	86.6	83.5
Q4	103.3	113.8	113.3	86.2	81.7
2017
Q1	106.0	115.8	114.9	91.8	84.1
Q2	107.0	115.4	116.8	93.8	85.5
Q3	108.0	115.4	119.3	94.1	87.4
Q4	110.6	119.1	120.5	97.4	88.0
2018
Q1	111.2	115.9	122.9	101.1	91.0
Q2	111.6	116.2	123.5	101.5	91.2
Note: Q1=first quarter. Source: Statistics Canada, table 36-10-0108-01.

Business investment in non-residential structures edged up 0.5% in the second quarter, following a 2.0% gain in the first. Spending on engineering structures was flat in the second quarter, after advancing to start the year. Outlays on non-residential buildings contributed to growth in both quarters, and have strengthened over the last year. Total business outlays on non-residential structures in the second quarter remain about 20% below levels at the end of 2014.

Business investment in machinery and equipment slowed in the second quarter (+0.3%), after a sizable gain to start the year. Investments in aircraft and other transportation equipment contributed to the gain in the second, supported by spending on computers and industrial machinery. Business spending on machinery and equipment has strengthened since early 2017 after trending lower in 2015 and 2016. However, outlays in the second quarter of this year are still down about 3% from levels at the end of 2014. 

Business outlays on intellectual property products edged up 0.2% in the second quarter, following a sizable increase in the first. Gains in the first quarter were broad-based, as expenditures on software, mineral exploration, and research and development all increased. Spending on research and development continued to rise in the second quarter, while outlays on mineral exploration declined. Total business investment in intellectual property assets has trended higher since early 2017 but remain about 10% lower than levels at the end of 2014. Spending on mineral exploration is down about 50% from levels in late 2014. 

Lower resale activity weighed on housing

Spending on residential structures edged up 0.3% in the second quarter of 2018, following a 2.7% decline in the first. Outlays on residential structures had risen 3.2% in late 2017 prior to the introduction of new mortgage regulations in January of this year. Lower spending on ownership transfer costs, a measure of the volume of activity in resale markets, accounted for the first-quarter decline, partly offset by increases in new construction and renovations. Ownership transfer costs continued to decline in the second quarter, and are down about 20% from levels in the fourth quarter of 2017. New construction also declined in second quarter, following six consecutive quarterly gains. Higher renovations in the second quarter (+2.9%) supported the overall increase in housing investment.

Productivity and industrial capacity strengthened on gains in oil extraction

Following a 0.3% decline to start the year, business sector labour productivity rose 0.7% in the second quarter. Higher productivity in mining and oil and gas extraction led the increase, as output in the sector rose 3.6% while hours worked were unchanged. Productivity in the construction sector also rose for the eighth consecutive quarter.

Industrial capacity utilization rose to 85.5% in the second quarter, the highest level since the second quarter of 2007. Higher capacity utilization in the energy sector led the gain. After remaining stable since mid-2017, capacity utilization in oil and gas extraction rose 4.4 percentage points in the second quarter, to 87.1%. Capacity utilization also strengthened in forestry and manufacturing.

The contribution of the terms of trade to income growth moderated during the first half of 2018, after making a sizable contribution in the fourth quarter of last year. Following a 0.8% increase to start the year, nominal GDP rose 1.3% in the second quarter as corporate earnings strengthened.

Resource extraction and construction bolstered output

Following a decline to start the year, the output of goods-producing industries rose steadily from February to May before slowing in June. Increased construction activity contributed to higher goods production in the first quarter, while increased activity in mining, quarrying and oil and gas extraction bolstered output in the second. Manufacturing output rose in both quarters (Chart 5).

Data table for Chart 5



Data table for chart 5
Table summary
This table displays the results of Data table for chart 5 Mining, quarrying, and oil and gas , Construction, Manufacturing, Retail and Wholesale, calculated using index (January 2007=100) units of measure (appearing as column headers).

	Mining, quarrying, and oil and gas	Construction	Manufacturing	Retail	Wholesale
	index (January 2007=100)
2007
January	100.0	100.0	100.0	100.0	100.0
February	101.2	100.2	100.5	100.1	103.9
March	101.8	100.7	100.5	100.4	104.2
April	99.4	101.1	100.8	102.0	104.2
May	101.2	102.1	100.0	102.6	104.9
June	101.7	102.3	100.2	102.4	105.1
July	100.2	102.4	99.3	102.5	104.2
August	102.4	102.8	99.0	103.9	103.5
September	101.5	102.8	98.7	102.9	103.6
October	99.3	102.0	98.7	103.3	104.4
November	98.4	102.2	98.5	104.7	103.5
December	97.4	103.4	95.9	106.4	102.4
2008
January	98.7	104.8	95.6	107.0	103.7
February	97.4	105.1	95.9	106.1	102.3
March	99.0	104.8	94.3	106.2	103.4
April	98.6	103.7	95.6	106.6	103.0
May	96.7	105.1	96.1	106.5	103.6
June	98.3	104.7	95.5	106.9	104.3
July	101.0	104.7	95.9	106.4	104.7
August	100.2	104.5	94.2	106.6	104.2
September	98.4	105.1	94.2	107.4	104.0
October	99.2	105.8	92.8	106.3	102.8
November	97.5	104.3	91.2	104.0	100.0
December	94.2	102.1	87.2	101.3	97.0
2009
January	97.0	98.8	84.1	103.1	95.2
February	93.5	97.5	83.2	102.9	94.7
March	88.2	96.3	82.0	102.7	93.9
April	85.4	95.7	80.7	102.6	93.9
May	85.8	96.4	79.7	103.1	94.4
June	86.6	96.5	79.0	103.3	94.6
July	85.5	96.8	79.6	103.4	95.6
August	83.9	97.5	80.0	103.5	95.9
September	87.0	98.6	80.9	104.1	96.0
October	87.0	99.6	80.5	104.0	96.4
November	88.2	101.5	81.8	102.3	98.2
December	87.2	102.5	81.4	104.0	100.1
2010
January	90.0	104.3	82.3	105.6	101.3
February	92.8	104.8	83.4	105.6	100.7
March	94.0	105.2	84.7	107.8	101.5
April	93.6	105.6	84.6	105.4	101.4
May	98.3	105.4	85.0	105.0	101.5
June	97.7	105.9	86.1	105.7	102.4
July	97.5	106.1	86.1	106.0	101.3
August	97.1	106.8	86.0	106.4	103.2
September	95.5	107.1	85.4	106.4	103.6
October	98.9	107.5	85.3	106.0	104.4
November	100.1	107.8	84.8	107.7	106.0
December	102.4	108.0	86.2	107.1	108.0
2011
January	100.0	109.0	87.0	106.8	109.6
February	99.5	109.4	86.3	106.8	108.0
March	101.8	108.8	86.9	105.3	109.2
April	102.5	108.6	86.9	106.5	108.0
May	98.8	108.4	86.4	106.5	109.2
June	100.5	109.5	86.8	107.9	108.8
July	103.6	110.3	88.1	106.9	111.9
August	107.3	111.1	87.9	106.8	111.1
September	107.6	111.6	88.9	107.1	111.6
October	105.9	111.8	89.1	107.8	113.1
November	105.2	112.3	89.6	107.8	113.3
December	105.6	113.5	91.1	109.5	114.3
2012
January	106.2	114.7	90.8	108.4	112.6
February	102.9	115.6	89.2	107.3	113.7
March	102.6	117.3	89.6	107.8	114.7
April	103.0	118.7	90.3	106.7	115.2
May	102.2	118.5	89.9	107.0	114.3
June	100.4	119.2	89.9	107.1	114.7
July	99.4	119.4	89.9	108.2	115.2
August	97.3	119.7	89.5	107.3	114.7
September	97.8	120.4	88.4	107.7	114.5
October	99.4	121.4	87.4	107.5	113.9
November	101.6	121.9	88.3	108.2	115.8
December	102.0	122.5	87.2	108.1	115.1
2013
January	102.5	122.5	88.3	110.7	116.7
February	104.5	123.0	88.5	110.4	117.6
March	105.6	123.8	88.8	111.1	117.7
April	105.3	124.6	88.3	112.1	118.4
May	105.0	125.0	88.2	114.4	119.5
June	103.8	122.2	88.2	113.1	117.3
July	106.1	124.8	88.0	114.2	120.5
August	107.6	125.2	88.6	115.3	120.1
September	108.9	124.9	89.8	115.0	120.7
October	109.9	125.3	90.9	115.8	121.8
November	109.3	125.6	90.7	115.8	122.4
December	109.7	124.5	88.7	115.3	119.8
2014
January	110.1	125.5	89.1	114.3	118.9
February	112.0	126.2	90.8	114.1	120.7
March	114.2	125.9	89.9	113.6	120.7
April	117.2	125.4	90.6	113.9	120.4
May	117.5	127.1	91.7	114.1	122.3
June	118.9	127.7	92.5	114.8	123.1
July	116.1	128.6	92.9	115.1	122.2
August	111.9	127.9	91.8	115.0	123.2
September	115.6	128.3	92.3	115.1	125.7
October	117.5	129.7	92.5	115.2	123.8
November	116.5	129.8	91.6	115.6	123.0
December	114.7	128.7	93.2	116.3	125.1
2015
January	114.1	126.2	92.3	114.2	122.4
February	113.0	124.1	91.5	116.0	122.7
March	111.0	122.9	92.2	117.3	123.0
April	110.6	122.1	91.7	116.4	124.7
May	109.8	122.7	91.3	117.1	123.1
June	112.9	121.6	90.7	117.9	124.2
July	116.2	121.1	91.3	118.5	123.5
August	115.9	121.5	92.6	119.1	123.3
September	110.5	120.5	91.7	120.4	123.2
October	112.1	119.7	91.2	119.4	123.6
November	112.2	119.5	92.0	120.8	124.9
December	112.2	119.1	92.2	119.6	125.3
2016
January	112.5	119.2	93.2	121.3	125.7
February	111.4	119.1	92.5	122.9	123.0
March	110.8	118.2	92.1	121.0	122.3
April	108.4	118.2	92.2	121.1	123.2
May	101.5	117.1	90.6	120.9	123.4
June	106.2	116.7	91.9	120.3	124.1
July	112.1	117.1	92.1	121.0	123.6
August	112.9	116.6	92.3	121.2	123.7
September	116.3	117.3	92.6	122.3	122.7
October	115.5	117.2	91.5	123.2	124.7
November	118.0	117.8	92.7	123.7	124.4
December	116.5	118.8	93.6	123.6	126.7
2017
January	119.4	119.8	94.0	125.4	126.7
February	119.1	120.1	93.5	125.7	127.5
March	118.2	120.5	94.1	126.6	129.6
April	119.0	122.0	94.5	127.9	130.0
May	122.4	120.6	95.5	128.0	130.4
June	122.1	122.4	96.4	129.2	130.5
July	123.1	122.8	95.9	129.2	131.5
August	123.7	123.2	95.0	128.5	131.8
September	124.6	124.0	94.9	128.1	130.7
October	122.3	124.5	95.0	131.2	134.3
November	123.3	125.2	96.5	129.9	133.5
December	125.8	124.7	96.8	128.4	133.4
2018
January	121.7	125.8	96.6	127.9	134.4
February	125.0	126.9	96.9	128.6	133.6
March	127.3	126.9	97.1	129.3	135.1
April	128.1	126.5	97.0	128.1	134.9
May	130.1	127.8	96.6	130.7	137.0
June	129.0	127.5	97.4	130.4	135.3
July	128.6	126.8	98.6	130.3	137.2
Source: Statistics Canada, table 36-10-0434-01.

Construction output strengthened in early 2018 as residential, non-residential and engineering activity all increased in January and February. Construction activity rose sharply in May on higher residential activity, before edging down in June. At mid-year, output in the construction sector was 2.3% higher than at year-end 2017, supported by increases in both residential and non-residential activity. Non-residential building construction increased from January to April, before edging lower into mid-year.

Manufacturing output expanded in three of the first six months of 2018 as durables strengthened. The output of fabricated metal manufacturers was 7.2% higher at mid-year than at year-end 2017, while primary metal manufacturing, which includes steel and aluminum producers, was up 4.4%. Transportation equipment manufacturing edged lower in the first half of 2018. Auto manufacturing in June was down 3.2% from levels at year-end 2017, and down 8.2% on a year-over-year basis. The output of petroleum refineries was down in the first half of the year, as maintenance shutdowns affected production levels in April and May. Refinery output ramped up in June as facilities came back on line. Refinery output in June was 5.6% lower than levels at year-end, and down about 11% on a year-over-year basis.

The output of service industries edged higher early in the year, and advanced sharply in May (+0.5%) on increases in retail and wholesale trade. Professional, scientific and technical services supported growth in both quarters, as output in computer systems design and architectural and engineering services continued to trend higher. Retail trade strengthened in the second quarter, after weighing on growth in the first.

The output of real estate agents and brokers declined sharply in January and February as new mortgage lending requirements took effect at the start of the year. Activity in this sector was relatively stable from March to June. As of June, the output of real estate agents and brokers was down nearly 20% from levels at year-end 2017.

Oil extraction and support services strengthened

Oil extraction contracted substantially at the start of 2018 as shutdowns in the oil sands weighed on non-conventional output. Non-conventional extraction rose from February to May, before edging lower at mid-year. Output rose sharply in May following maintenance and expansion-related activities. Non-conventional output in June was 1.3% higher than levels at year-end, and 12% higher on a year-over-year basis, following sizable gains in late 2017 (Chart 6).

Conventional oil and gas extraction rose in four of the first six months of 2018. Conventional output in June was 5.6% higher than levels at year-end 2017, after edging lower during the second half of last year.       

Data table for Chart 6



Data table for chart 6
Table summary
This table displays the results of Data table for chart 6 Conventional oil and gas extraction, Non-conventional oil extraction, Support activities for mining and oil and gas extraction, Crude oil and other pipeline transportation and Petroleum refineries, calculated using index (January 2007=100) units of measure (appearing as column headers).

	Conventional oil and gas extraction	Non-conventional oil extraction	Support activities for mining and oil and gas extraction	Crude oil and other pipeline transportation	Petroleum refineries
	index (January 2007=100)
2007
January	100.0	100.0	100.0	100.0	100.0
February	100.2	108.1	98.8	97.7	99.8
March	100.3	112.5	95.5	96.6	100.7
April	103.4	102.3	80.3	96.8	102.7
May	103.7	100.0	88.1	96.1	100.6
June	105.5	94.4	95.1	93.2	101.5
July	99.5	101.6	100.9	96.6	104.6
August	100.8	110.6	94.9	95.3	102.1
September	101.0	106.4	94.1	94.8	101.6
October	99.4	105.1	90.8	94.0	101.4
November	98.3	101.8	93.4	93.6	98.9
December	97.9	93.2	91.6	91.7	100.3
2008
January	95.7	104.9	94.3	92.3	99.8
February	94.7	102.5	92.2	91.7	97.4
March	95.9	105.7	93.3	90.6	91.6
April	97.5	101.6	89.4	89.4	97.6
May	95.4	97.9	90.3	91.7	98.3
June	93.5	105.2	106.8	89.4	97.9
July	97.2	107.9	111.6	86.8	96.4
August	94.5	110.9	111.6	87.6	94.0
September	94.4	106.3	108.2	86.1	93.9
October	95.9	107.3	112.2	89.8	96.1
November	93.6	109.4	110.0	88.1	97.9
December	91.1	112.9	89.7	90.7	98.2
2009
January	92.1	115.1	91.7	88.3	100.2
February	91.4	121.6	86.4	85.2	102.4
March	88.5	118.2	64.7	84.3	103.0
April	85.9	111.9	69.9	83.2	98.2
May	82.4	124.7	68.1	80.7	103.6
June	85.8	127.2	67.2	84.3	101.2
July	86.3	128.8	62.4	83.4	100.7
August	81.7	122.8	68.7	82.8	100.4
September	82.1	127.7	72.7	86.4	95.1
October	81.3	130.1	70.2	87.3	94.6
November	82.9	130.4	80.3	87.8	98.4
December	81.2	120.8	92.0	85.7	99.6
2010
January	83.6	113.8	90.3	82.0	100.9
February	82.4	127.1	98.0	81.4	94.6
March	83.6	131.8	89.6	87.6	94.5
April	83.8	135.1	87.2	85.8	91.4
May	85.4	144.8	97.8	87.9	94.4
June	85.3	145.7	94.3	87.8	98.3
July	86.1	140.3	94.2	89.8	95.2
August	88.4	136.5	88.7	90.0	93.7
September	87.3	131.9	81.0	80.1	96.9
October	86.6	139.0	92.8	82.6	84.0
November	86.7	148.9	92.9	87.7	89.1
December	88.4	153.5	97.6	87.6	92.0
2011
January	88.4	146.5	89.1	97.8	88.0
February	86.3	148.5	88.9	102.6	87.6
March	87.6	146.8	104.3	99.2	88.6
April	88.1	151.6	101.8	95.2	89.9
May	86.9	135.6	102.8	94.5	78.8
June	85.4	145.7	103.2	96.5	83.3
July	87.7	151.0	105.1	100.9	84.0
August	89.5	154.0	123.7	106.1	86.7
September	89.9	155.4	123.9	106.2	95.1
October	89.1	151.4	124.1	106.2	91.1
November	87.9	151.7	123.7	104.0	89.3
December	88.0	153.1	120.6	105.7	88.4
2012
January	87.8	160.8	121.7	110.9	87.4
February	86.0	154.8	124.0	109.0	89.7
March	85.6	145.8	127.2	109.9	86.6
April	84.8	157.4	117.8	113.5	90.8
May	82.4	162.9	108.7	117.1	88.5
June	79.7	158.8	108.6	117.2	86.8
July	78.4	162.0	104.5	115.3	91.4
August	76.6	159.1	102.8	113.4	89.6
September	76.5	156.9	107.2	111.0	87.8
October	81.0	160.4	102.4	104.8	94.3
November	83.1	156.9	105.2	109.4	93.5
December	81.6	162.6	107.7	114.9	93.1
2013
January	82.1	159.9	112.0	116.0	93.9
February	82.7	161.2	116.8	117.4	89.7
March	83.4	167.5	113.1	119.5	90.7
April	83.3	164.8	114.5	117.9	90.6
May	84.9	160.3	110.2	115.1	80.3
June	85.5	161.0	104.9	116.9	94.7
July	86.9	163.7	111.7	114.9	88.7
August	86.9	170.5	116.6	118.9	91.2
September	87.3	173.2	118.3	119.6	94.9
October	86.0	176.2	120.4	123.4	90.0
November	86.1	180.6	111.3	122.1	94.5
December	87.4	184.3	106.4	115.4	90.0
2014
January	87.7	182.4	112.6	116.4	90.2
February	89.2	181.5	115.6	118.5	96.5
March	88.6	189.6	123.6	119.1	85.7
April	87.7	200.0	131.5	118.8	88.4
May	89.2	202.4	127.9	125.3	91.8
June	90.4	205.1	123.0	128.2	103.1
July	89.7	197.2	120.3	125.0	98.4
August	86.2	189.7	111.3	122.9	94.9
September	88.7	201.2	113.3	125.1	87.9
October	90.0	208.7	112.0	124.4	92.3
November	91.4	198.2	114.6	124.7	96.9
December	88.7	199.3	110.3	125.6	97.2
2015
January	89.5	209.5	88.9	123.2	94.1
February	88.9	214.9	73.5	127.5	92.9
March	87.4	212.9	65.3	124.0	96.7
April	86.7	205.6	75.5	132.6	95.1
May	85.1	201.7	83.9	128.8	96.5
June	85.1	214.6	84.8	132.8	88.0
July	85.3	232.2	81.6	138.0	89.3
August	85.8	227.9	84.3	142.7	94.8
September	86.4	201.8	76.7	141.0	92.2
October	85.2	214.8	77.5	135.7	93.0
November	86.0	218.3	73.7	138.5	88.6
December	86.2	220.9	65.9	142.6	92.0
2016
January	87.8	220.5	64.3	147.4	93.3
February	86.7	218.6	60.1	149.6	92.6
March	87.2	223.3	51.4	143.1	93.1
April	88.3	208.7	51.3	136.9	96.4
May	89.8	162.9	52.6	130.9	83.2
June	89.6	184.9	53.4	133.9	91.6
July	90.3	222.9	53.8	138.1	98.9
August	91.1	222.2	56.0	144.5	94.1
September	92.1	236.2	59.1	147.5	91.5
October	89.3	236.6	60.6	145.3	85.6
November	89.3	244.5	65.9	148.1	91.8
December	86.9	232.8	76.7	145.3	92.8
2017
January	88.9	241.0	78.6	146.2	94.0
February	88.2	243.5	81.8	148.3	92.9
March	91.0	231.0	84.8	146.4	96.7
April	91.0	228.2	87.4	146.8	98.2
May	94.4	238.2	85.3	152.5	106.6
June	95.1	234.8	85.0	151.9	101.2
July	94.7	241.5	84.3	158.5	98.7
August	92.1	248.4	83.6	152.6	96.3
September	95.4	244.7	82.6	157.9	100.2
October	96.9	229.8	79.8	155.6	104.6
November	95.8	241.8	79.4	142.8	96.2
December	95.0	259.9	79.0	148.6	96.0
2018
January	94.1	238.8	80.9	150.6	96.2
February	96.7	247.3	81.6	151.2	97.5
March	97.0	256.9	83.4	156.5	93.7
April	100.4	256.9	88.4	157.2	73.9
May	100.1	270.6	86.2	159.2	76.9
June	100.4	263.2	85.4	160.4	90.5
July	100.9	254.8	85.7	160.0	97.6
Source: Statistics Canada, table 36-10-0434-01.

Businesses that provide support activities for mining and oil and gas extraction, including rigging and drilling services, expanded output in the first half of 2018, as production rose from January to April prior to declines into mid-year. The output of these businesses in June was 8.1% higher than at year-end 2017, and about 60% higher than levels reported two years ago when activity in this industry was near recent lows. Output in June 2018 was similar to levels reported in mid-2015.        

The output of crude oil pipelines increased steadily over the first half of 2018, posting six consecutive gains to start the year. Output in June was 7.9% higher than levels at year-end. Monthly exports of crude oil and equivalent products by pipeline averaged 95.6 million barrels during the first half of 2018, compared to 90.3 million barrels during the last half of 2017.

More recently, real GDP rose 0.2% in July, led by gains in manufacturing and wholesale trade.  Non-durable manufacturing increased 2.4% in July, the largest monthly gain in four years, as the output of chemical manufacturers and petroleum refineries rose sharply following maintenance and retooling activities at some facilities earlier in the year.

Employment growth slowed on part-time losses

The pace of employment growth, measured year-over-year, slowed during the first half of 2018, edging down to 1.2% in June. Total employment was little changed over the first six months of the year, as gains in full-time work (+85,000) were offset by lower part-time employment (-102,000) (Chart 7). The number of private sector employees declined by 48,000 in the first half, while employment among core-aged workers was little changed. Employment in manufacturing was down 32,000 during the first six months of 2018.

Data table for Chart 7



Data table for chart 7
Table summary
This table displays the results of Data table for chart 7 Full-time and Part-time, calculated using year-over-year change (thousands of persons) units of measure (appearing as column headers).

	Full-time	Part-time
	year-over-year change (thousands of persons)
2007
January	287.7	113.0
February	324.8	58.0
March	308.7	71.8
April	247.1	88.8
May	160.5	121.6
June	332.8	2.8
July	314.7	61.6
August	267.5	110.7
September	299.5	98.9
October	270.1	161.4
November	296.1	124.3
December	265.0	94.4
2008
January	279.7	51.6
February	311.5	44.1
March	249.1	43.0
April	289.7	37.1
May	204.1	104.5
June	83.2	161.4
July	86.0	107.2
August	139.9	64.3
September	114.5	106.1
October	124.7	68.9
November	23.2	32.5
December	-50.2	71.5
2009
January	-185.2	55.8
February	-365.5	138.1
March	-369.0	138.7
April	-391.4	98.5
May	-416.0	92.2
June	-436.9	110.3
July	-402.7	85.2
August	-482.6	154.8
September	-372.1	10.8
October	-364.1	-18.3
November	-221.0	40.8
December	-166.0	1.5
2010
January	-67.4	72.3
February	118.4	-43.7
March	89.3	16.1
April	138.3	86.7
May	230.7	35.2
June	303.0	42.6
July	118.4	218.0
August	206.9	135.4
September	134.8	144.3
October	159.5	147.3
November	113.6	143.9
December	180.3	127.5
2011
January	209.7	105.6
February	96.4	198.5
March	260.8	44.5
April	236.1	28.9
May	193.8	39.2
June	186.6	23.6
July	382.9	-144.1
August	353.2	-102.2
September	360.4	-65.8
October	232.8	6.5
November	269.2	-66.7
December	231.2	-30.2
2012
January	190.4	-68.5
February	229.0	-106.1
March	212.3	-18.2
April	250.8	-0.1
May	225.5	21.2
June	237.4	-14.8
July	213.0	-33.9
August	203.5	-2.9
September	188.4	38.8
October	288.2	-21.4
November	253.4	48.0
December	273.2	38.8
2013
January	289.5	62.1
February	327.2	50.4
March	195.4	57.6
April	183.2	9.7
May	275.1	-21.6
June	199.9	36.3
July	159.2	96.4
August	153.5	93.8
September	167.6	49.2
October	172.5	34.1
November	136.4	47.2
December	52.4	78.5
2014
January	64.7	64.7
February	72.0	42.0
March	105.6	55.2
April	52.2	67.2
May	-70.5	137.4
June	27.5	58.6
July	22.3	100.8
August	-6.2	73.4
September	24.1	68.3
October	28.1	110.4
November	67.1	48.3
December	145.5	-37.4
2015
January	116.6	11.7
February	128.7	8.1
March	126.5	7.2
April	171.9	-35.9
May	234.8	-42.6
June	235.2	-61.0
July	273.9	-105.1
August	323.8	-124.7
September	196.5	-30.2
October	174.3	-43.5
November	202.0	-74.8
December	148.9	3.2
2016
January	168.1	-51.8
February	54.7	51.8
March	109.8	14.8
April	88.2	56.5
May	102.2	-8.8
June	25.0	80.3
July	-42.7	110.6
August	-22.8	113.5
September	60.6	100.0
October	25.6	150.7
November	-25.5	224.3
December	75.2	147.0
2017
January	93.4	183.9
February	250.6	41.2
March	228.3	50.9
April	197.6	84.5
May	232.7	90.3
June	262.6	96.2
July	356.3	35.7
August	222.8	154.9
September	287.6	36.1
October	401.3	-85.5
November	445.2	-50.3
December	391.0	36.3
2018
January	414.1	-125.4
February	282.9	-0.4
March	335.2	-38.9
April	378.3	-100.0
May	289.7	-51.5
June	284.1	-69.1
July	210.5	35.4
August	326.1	-154.4
September	224.0	-1.6
Source: Statistics Canada, table 14-10-0287-01.

Data table for Chart 8



Data table for chart 8
Table summary
This table displays the results of Data table for chart 8 Canada, Quebec, Ontario, Alberta and British Columbia, calculated using index (January 2013=100) units of measure (appearing as column headers).

	Canada	Quebec	Ontario	Alberta	British Columbia
	index (January 2013=100)
2013
January	100.0	100.0	100.0	100.0	100.0
February	100.1	99.8	100.2	99.8	100.9
March	100.0	99.3	100.2	99.9	100.1
April	100.1	99.7	100.3	100.1	100.8
May	100.4	99.7	100.8	100.9	100.7
June	100.4	99.5	100.8	100.7	100.7
July	100.4	99.3	100.8	101.0	100.6
August	100.6	99.1	101.1	102.2	101.2
September	100.6	99.5	101.2	101.8	100.8
October	100.7	100.1	101.1	101.6	100.5
November	100.7	100.3	101.3	101.9	100.1
December	100.7	100.0	101.1	101.7	100.8
2014
January	100.7	100.1	101.1	101.6	101.2
February	100.8	99.3	101.3	102.6	101.1
March	100.9	99.8	101.4	102.4	101.3
April	100.8	99.2	101.6	102.5	101.3
May	100.8	99.2	101.4	103.0	101.3
June	100.9	99.6	101.1	103.6	101.3
July	101.1	99.7	101.6	103.6	101.1
August	101.0	99.8	101.6	102.9	100.9
September	101.2	99.7	101.8	103.4	101.2
October	101.5	99.6	102.4	103.9	101.1
November	101.4	99.9	101.9	104.1	101.4
December	101.3	99.7	101.6	104.5	101.4
2015
January	101.5	100.0	101.6	104.9	101.8
February	101.6	100.6	101.9	104.4	101.4
March	101.6	100.7	101.9	104.1	101.6
April	101.6	101.0	101.8	104.8	100.4
May	101.8	100.8	102.3	104.6	101.9
June	101.9	100.2	102.5	104.5	102.3
July	102.0	100.8	102.7	104.6	102.4
August	102.1	100.7	102.6	104.7	102.8
September	102.1	100.8	102.2	105.0	103.4
October	102.2	100.6	102.4	104.2	104.2
November	102.1	100.5	102.3	104.0	104.3
December	102.1	100.7	102.8	103.5	103.9
2016
January	102.1	100.7	103.0	103.2	104.0
February	102.2	100.9	102.9	103.3	104.5
March	102.3	100.7	103.1	103.7	104.9
April	102.4	100.8	103.2	102.9	105.5
May	102.4	101.2	103.4	102.0	105.0
June	102.5	101.0	103.5	102.0	105.5
July	102.4	101.0	103.0	102.2	106.2
August	102.6	101.7	103.2	102.3	106.1
September	103.0	102.5	103.4	103.0	106.2
October	103.2	102.6	103.8	103.3	106.9
November	103.2	102.7	103.9	102.8	106.5
December	103.4	102.9	104.0	102.8	107.3
2017
January	103.7	103.0	104.4	102.9	107.8
February	103.8	102.9	104.5	103.1	108.5
March	103.9	103.0	104.4	103.7	108.7
April	104.0	103.0	104.5	103.8	109.3
May	104.2	103.3	104.6	103.9	109.6
June	104.5	104.1	104.7	104.1	110.3
July	104.7	104.1	105.2	103.7	110.1
August	104.8	104.0	105.5	103.8	110.3
September	104.8	103.9	106.0	103.6	109.9
October	105.0	104.3	106.0	104.1	109.6
November	105.5	104.7	106.6	104.4	110.6
December	105.8	105.2	106.7	105.3	110.7
2018
January	105.3	104.8	105.9	105.0	110.5
February	105.4	104.7	106.2	105.1	110.3
March	105.6	105.1	106.3	105.5	110.2
April	105.6	104.8	106.5	105.4	110.3
May	105.6	104.9	106.5	105.6	109.7
June	105.7	104.7	107.0	105.7	109.4
July	106.0	104.5	107.9	105.5	109.9
August	105.8	104.5	106.7	106.2	110.3
September	106.1	104.3	107.2	106.1	111.8
Source: Statistics Canada, table 14-10-0287-01.

Employment in Ontario was little changed over the first six months of the year (+21,000) as increases in full-time work were offset by part-time losses. In January 2018, the minimum wage in Ontario increased from $11.60 per hour to $14.00 per hour. Employment levels in the province were relatively stable in several sectors that employ large numbers of lower-wage workers, including accommodation and food services, agriculture, and other services, while employment in wholesale and retail edged lower in the first half following gains late last year. The pace of employment growth in British Columbia continued to slow in the first half of 2018, as employment in June was little changed from levels in mid-2017. Following gains in late 2017, employment growth in Quebec also slowed in the first half of 2018 (Chart 8).         

The national unemployment rate remained below 6% from January to May, before edging up to 6% in June. The unemployment rate in Ontario and Quebec averaged 5.6% and 5.5% respectively over the first six months of the year. Alberta’s rate edged below 7% in February for the first time since October 2015, and averaged 6.6% during the first half of the year. Unemployment in British Columbia averaged 4.9% from January to June.  

Data table for Chart 9



Data table for chart 9
Table summary
This table displays the results of Data table for chart 9 Canada, Quebec, Ontario, Alberta and British Columbia, calculated using percent units of measure (appearing as column headers).

	Canada	Quebec	Ontario	Alberta	British Columbia
	percent
2013
January	81.7	82.1	81.1	84.4	80.1
February	81.7	81.8	81.1	84.9	80.7
March	81.5	81.4	81.2	84.4	79.7
April	81.6	81.5	81.3	84.4	80.5
May	81.7	81.3	81.6	84.5	80.1
June	81.7	81.6	81.5	83.9	79.7
July	81.7	81.8	81.5	83.6	79.9
August	81.6	81.5	81.3	84.2	80.5
September	81.6	81.7	81.3	83.9	80.0
October	81.5	82.3	81.0	83.8	79.9
November	81.5	82.2	81.0	84.1	79.7
December	81.3	81.6	80.6	83.9	80.2
2014
January	81.4	82.0	80.6	84.1	80.3
February	81.4	81.3	80.7	84.1	80.3
March	81.5	81.4	80.8	84.4	80.9
April	81.1	81.1	80.5	84.2	80.1
May	81.0	81.1	80.2	84.1	80.3
June	80.9	80.8	80.0	84.5	80.1
July	80.9	80.7	80.2	84.1	79.9
August	81.1	81.0	80.6	83.4	80.1
September	81.2	81.0	80.7	83.5	80.1
October	81.4	81.2	81.1	83.3	80.5
November	81.5	81.3	80.9	84.3	80.6
December	81.5	81.4	81.0	84.1	80.3
2015
January	81.5	81.6	80.4	84.6	80.7
February	81.5	82.1	80.7	83.7	80.5
March	81.3	82.1	80.5	82.9	80.5
April	81.3	82.2	80.7	83.2	79.5
May	81.5	82.2	80.9	82.6	80.7
June	81.5	82.2	81.0	82.3	80.8
July	81.6	82.4	81.2	82.4	81.1
August	81.5	82.3	81.0	82.6	81.0
September	81.5	82.1	80.7	83.2	81.1
October	81.3	81.7	80.7	82.7	80.8
November	81.3	82.0	80.6	82.4	80.9
December	81.2	82.2	80.8	81.9	80.3
2016
January	81.3	82.2	81.1	81.6	80.4
February	81.2	82.4	80.8	81.8	80.6
March	81.3	82.6	80.8	81.9	80.6
April	81.5	82.8	81.0	81.6	80.9
May	81.4	83.1	81.0	81.2	80.3
June	81.3	82.8	80.9	80.8	80.8
July	81.3	83.1	80.4	81.1	81.1
August	81.2	83.0	80.5	81.3	80.6
September	81.3	83.6	80.6	80.9	80.6
October	81.4	83.0	80.9	81.3	81.5
November	81.6	83.3	81.2	80.9	81.3
December	81.8	83.5	81.5	81.0	81.5
2017
January	82.1	84.1	81.9	80.8	82.0
February	82.2	83.7	81.9	81.6	82.1
March	82.3	83.9	81.9	82.3	82.6
April	82.2	84.0	81.4	81.7	83.1
May	82.3	84.4	81.2	82.1	83.1
June	82.3	84.6	81.2	82.4	83.2
July	82.3	84.6	81.1	82.1	83.0
August	82.3	84.6	81.0	82.2	83.6
September	82.2	84.3	81.1	82.2	83.6
October	82.4	85.0	81.0	82.6	83.1
November	82.4	85.1	81.0	82.6	83.4
December	82.7	85.5	80.9	83.3	83.9
2018
January	82.3	84.7	80.9	83.0	83.1
February	82.6	84.9	81.3	82.7	83.5
March	82.5	85.2	81.0	83.1	83.2
April	82.7	84.8	81.4	83.8	83.1
May	82.3	84.2	81.3	83.8	82.2
June	82.4	84.0	81.5	83.6	82.3
July	82.6	83.8	81.9	83.7	82.9
August	82.5	84.3	81.2	84.0	83.3
September	82.8	84.6	81.5	83.7	84.3
Source: Statistics Canada, table 14-10-0287-01.

The employment rate, the number of persons employed as a percentage of the working-age population, edged down slightly in the first half of 2018, to 61.5% in June. Among core-age workers, the employment rate was relatively stable, averaging 82.5% during this period. The core-age employment rate in Ontario averaged 81.2% from January to June, compared to 83.3% and 82.9% in Alberta and British Columbia. In Quebec, the rate of core-age employment averaged 84.6% during the first half, highest among the provinces, as the share of persons aged 25 to 54  in the province that are working trended higher from mid-2014 to early 2018 (Chart 9).^{Note 2}

More recently, employment rose 66,000 in the third quarter on gains in part-time work and among private sector employees. Overall employment gains in the quarter were concentrated in British Columbia. The national unemployment rate was 5.9% in September.

Faster earnings growth in central Canada

After accelerating in the second half of 2017, earnings growth, measured year-over-year, averaged 2.9% over the first six months of the year. Earnings growth accelerated to 3.4% in February, the largest year-over-year gain since mid-2014, on broad-based increases. The pace of earnings growth declined below 3% from April to June as gains among professional services moderated, and earnings declined among administrative and support services. Earnings growth in the goods sector edged higher towards mid-year, bolstered by increases in construction.

The pace of earnings growth varied markedly across the country in the first half of 2018. Quebec posted the largest increase among the provinces, averaging 4.0% over the first six months of the year. Gains in Ontario averaged 3.0% during the first half. Among the western provinces, average earnings growth ranged from 2.8% in Alberta and Manitoba to 0.8% in Saskatchewan. In Atlantic Canada, earnings growth ranged from 3.0% in New Brunswick to 0.7% in Nova Scotia.

In July, average weekly earnings, measured year-over-year, accelerated to 3.0%, led by gains in retail trade, accommodation and food services, and construction. Earnings growth was at or above 3% in New Brunswick, Manitoba, Ontario, British Columbia and Quebec.

Merchandise trade deficits narrowed as energy surplus expanded

Canada posted a cumulative merchandise trade deficit of $13.5 billion over the first six months of 2018, down from a deficit of $16.2 billion during the last half of 2017. A larger net surplus in energy products during the first half was partly offset by higher deficits in several non-energy products, including basic and industrial chemicals, and motor vehicles and parts. In addition, a larger surplus in forestry and building products also contributed to a smaller overall trade deficit (Chart 10).

Data table for Chart 10



Data table for chart 10
Table summary
This table displays the results of Data table for chart 10 Total, Energy and Non-Energy, calculated using billions of dollars units of measure (appearing as column headers).

	Total	Energy	Non-Energy
	millions of dollars
2007
January	4,647.9	3,661.8	986.1
February	4,037.6	4,812.4	-774.8
March	4,441.1	4,193.0	248.1
April	5,570.9	4,438.5	1,132.4
May	5,337.1	4,136.4	1,200.7
June	3,770.9	3,548.1	222.8
July	2,559.8	3,207.4	-647.6
August	3,788.6	3,916.3	-127.7
September	2,612.9	3,965.4	-1,352.5
October	3,092.5	4,618.3	-1,525.8
November	3,773.7	4,567.6	-793.9
December	1,961.5	4,089.5	-2,128.0
2008
January	2,484.8	4,284.3	-1,799.5
February	3,784.1	5,327.5	-1,543.4
March	5,727.2	6,351.2	-624.0
April	4,976.0	6,000.4	-1,024.4
May	5,623.7	6,998.3	-1,374.6
June	5,060.8	6,496.8	-1,436.0
July	5,592.2	6,548.1	-955.9
August	5,679.9	6,605.1	-925.2
September	3,447.8	5,803.9	-2,356.1
October	2,610.1	4,741.2	-2,131.1
November	386.6	4,169.8	-3,783.2
December	-1,703.6	2,902.7	-4,606.3
2009
January	-1,767.1	3,093.6	-4,860.7
February	-44.7	3,250.4	-3,295.1
March	1,079.3	3,801.7	-2,722.4
April	-676.2	2,969.5	-3,645.7
May	-1,543.6	2,700.0	-4,243.6
June	97.3	3,649.4	-3,552.1
July	-782.4	3,160.4	-3,942.8
August	-1,561.3	3,269.5	-4,830.8
September	-821.4	3,775.6	-4,597.0
October	360.0	4,086.1	-3,726.1
November	-334.5	4,354.9	-4,689.4
December	-778.8	4,014.9	-4,793.7
2010
January	394.0	4,346.7	-3,952.7
February	61.2	4,467.2	-4,406.0
March	-1,255.8	3,732.8	-4,988.6
April	109.6	3,842.6	-3,733.0
May	-860.2	3,779.8	-4,640.0
June	-1,396.2	3,765.0	-5,161.2
July	-2,071.0	3,452.0	-5,523.0
August	-1,771.5	2,890.1	-4,661.6
September	-2,333.8	3,439.4	-5,773.2
October	-1,182.5	3,685.1	-4,867.6
November	-512.8	3,775.6	-4,288.4
December	1,115.7	4,789.2	-3,673.5
2011
January	744.1	4,842.6	-4,098.5
February	-48.5	4,431.9	-4,480.4
March	-999.5	3,881.3	-4,880.8
April	-239.7	4,494.0	-4,733.7
May	-1,086.0	4,053.7	-5,139.7
June	-1,114.5	4,526.6	-5,641.1
July	148.8	4,678.2	-4,529.4
August	208.8	4,744.0	-4,535.2
September	1,097.8	5,199.1	-4,101.3
October	-840.1	4,877.8	-5,717.9
November	575.3	5,305.7	-4,730.4
December	2,121.1	6,015.9	-3,894.8
2012
January	-34.7	5,887.1	-5,921.8
February	-1.0	5,450.7	-5,451.7
March	-1,162.1	5,013.9	-6,176.0
April	-740.9	5,081.4	-5,822.3
May	-1,386.6	4,092.9	-5,479.5
June	-2,337.8	4,804.3	-7,142.1
July	-3,042.0	3,771.5	-6,813.5
August	-1,076.3	4,301.2	-5,377.5
September	-1,051.1	4,810.8	-5,861.9
October	-379.3	4,837.1	-5,216.4
November	-1,673.3	4,729.1	-6,402.4
December	-404.0	4,718.1	-5,122.1
2013
January	-882.6	4,880.9	-5,763.5
February	-690.4	5,275.8	-5,966.2
March	-183.1	5,617.8	-5,800.9
April	-153.1	5,437.0	-5,590.1
May	-820.4	5,240.3	-6,060.7
June	-444.0	5,383.7	-5,827.7
July	-1,656.5	5,890.5	-7,547.0
August	-797.6	6,641.7	-7,439.3
September	-35.1	6,693.6	-6,728.7
October	-371.7	6,469.5	-6,841.2
November	-1,267.6	5,840.2	-7,107.8
December	-843.3	6,154.7	-6,998.0
2014
January	-876.4	7,141.1	-8,017.5
February	574.5	8,080.8	-7,506.3
March	1,523.3	8,618.1	-7,094.8
April	322.5	7,188.8	-6,866.3
May	567.5	7,574.2	-7,006.7
June	1,628.3	7,596.5	-5,968.2
July	1,694.9	7,050.0	-5,355.1
August	922.8	7,084.2	-6,161.4
September	585.5	6,783.4	-6,197.9
October	-191.3	6,767.6	-6,958.9
November	-796.2	6,080.8	-6,877.0
December	-1,282.5	5,224.9	-6,507.4
2015
January	-2,399.2	4,795.2	-7,194.4
February	-1,955.5	4,978.8	-6,934.3
March	-3,312.4	4,552.4	-7,864.8
April	-2,285.3	4,455.1	-6,740.4
May	-2,726.1	4,756.9	-7,483.0
June	-135.4	5,015.4	-5,150.8
July	-209.9	4,725.0	-4,934.9
August	-1,926.0	4,091.6	-6,017.6
September	-1,794.6	4,032.0	-5,826.6
October	-2,184.5	4,189.9	-6,374.4
November	-2,993.0	3,665.2	-6,658.2
December	-1,813.0	3,554.7	-5,367.7
2016
January	-1,615.8	3,366.5	-4,982.3
February	-2,901.7	2,583.4	-5,485.1
March	-3,455.6	2,744.5	-6,200.1
April	-3,037.9	3,115.8	-6,153.7
May	-3,706.8	2,974.1	-6,680.9
June	-3,619.1	2,946.6	-6,565.7
July	-1,704.4	3,263.3	-4,967.7
August	-1,688.1	3,764.8	-5,452.9
September	-4,127.4	3,946.3	-8,073.7
October	-1,403.1	4,257.7	-5,660.8
November	1,139.4	5,079.4	-3,940.0
December	249.7	6,191.7	-5,942.0
2017
January	-485.0	5,333.0	-5,818.0
February	-1,633.9	5,265.1	-6,899.0
March	-667.9	5,808.2	-6,476.1
April	-1,107.3	5,668.2	-6,775.5
May	-1,015.1	5,561.7	-6,576.8
June	-2,823.7	4,800.6	-7,624.3
July	-2,597.6	4,740.7	-7,338.3
August	-2,872.0	5,003.3	-7,875.3
September	-3,258.9	4,827.4	-8,086.3
October	-1,485.1	5,134.2	-6,619.3
November	-2,512.8	5,422.5	-7,935.3
December	-3,495.7	5,359.0	-8,854.7
2018
January	-1,877.0	6,024.3	-7,901.3
February	-2,637.2	5,544.7	-8,181.9
March	-3,961.8	5,959.0	-9,920.8
April	-1,548.9	6,190.8	-7,739.7
May	-2,691.5	5,805.5	-8,497.0
June	-775.1	6,802.1	-7,577.2
July	-189.3	7,006.9	-7,196.2
August	526.1	7,030.9	-6,504.8
Source: Statistics Canada, table 12-10-0001-01.

Total energy exports during the first six months of 2018 totalled $54.9 billion, an increase of about 20% from the second half of last year. Exports of non-energy products rose 4.6% in the first half of 2018, reflecting widespread gains across commodities. Higher shipments of metal and non-metallic mineral products, consumer goods and forestry products supported the increase in non-energy exports (Chart 11). Higher prices were mainly responsible for increased exports of metals and non-metallic minerals, a category which includes steel and aluminium exports, as volumes were relatively stable.

Data table for Chart 11



Data table for chart 11
Table summary
This table displays the results of Data table for chart 11 Total, Energy and Non-energy, calculated using index (January 2007=100) units of measure (appearing as column headers).

	Total	Energy	Non-energy
	index (January 2007=100)
2007
January	100.0	100.0	100.0
February	98.3	109.9	96.0
March	102.1	110.4	100.4
April	102.6	111.0	100.9
May	100.6	110.0	98.7
June	97.3	104.4	95.9
July	95.9	98.3	95.4
August	96.1	106.0	94.2
September	93.7	109.3	90.6
October	92.5	111.1	88.9
November	95.1	115.9	90.9
December	91.0	117.4	85.8
2008
January	95.0	128.2	88.4
February	98.5	138.8	90.5
March	101.4	150.2	91.7
April	103.2	159.9	92.0
May	108.7	170.9	96.4
June	110.3	184.0	95.7
July	112.5	185.3	98.1
August	108.4	168.2	96.6
September	105.5	158.8	94.9
October	105.2	147.6	96.8
November	96.7	120.3	92.0
December	85.3	93.5	83.7
2009
January	77.2	88.9	74.8
February	81.7	89.9	80.1
March	81.0	91.3	78.9
April	76.6	83.6	75.2
May	70.3	79.0	68.5
June	74.1	94.4	70.0
July	77.6	95.2	74.1
August	74.0	94.7	69.9
September	75.9	96.2	71.9
October	78.4	103.5	73.4
November	79.6	108.5	73.9
December	81.1	113.0	74.8
2010
January	81.7	113.1	75.5
February	83.6	112.3	77.9
March	82.6	108.2	77.6
April	83.1	105.0	78.7
May	85.2	107.4	80.8
June	84.3	100.2	81.2
July	83.5	101.6	79.9
August	85.7	100.8	82.7
September	84.0	99.1	81.1
October	86.4	100.5	83.6
November	87.7	106.6	84.0
December	92.3	124.2	86.0
2011
January	94.8	129.6	87.9
February	90.1	119.3	84.3
March	91.8	125.1	85.2
April	93.0	130.5	85.5
May	92.6	128.7	85.4
June	91.7	126.4	84.8
July	95.1	126.1	89.0
August	97.8	127.6	91.9
September	100.7	138.8	93.2
October	98.7	138.1	90.9
November	101.4	147.7	92.2
December	105.6	149.3	96.9
2012
January	100.2	149.0	90.5
February	100.0	146.3	90.9
March	96.8	134.7	89.3
April	97.4	131.9	90.6
May	97.3	126.1	91.6
June	96.4	125.4	90.7
July	94.7	118.8	90.0
August	95.9	125.7	90.1
September	95.6	127.7	89.3
October	96.7	133.5	89.4
November	97.2	136.3	89.4
December	97.2	132.3	90.2
2013
January	97.5	136.7	89.7
February	99.7	139.5	91.9
March	101.1	142.4	92.9
April	102.4	140.4	95.0
May	100.1	138.1	92.6
June	99.8	138.0	92.3
July	97.6	141.7	88.9
August	102.7	160.1	91.4
September	103.7	160.2	92.5
October	101.8	152.8	91.7
November	101.4	141.7	93.4
December	102.3	152.0	92.5
2014
January	102.1	164.6	89.7
February	109.1	184.9	94.1
March	112.2	191.8	96.5
April	110.4	165.9	99.4
May	114.3	172.4	102.8
June	114.0	173.6	102.2
July	114.4	169.3	103.6
August	113.0	161.3	103.5
September	113.5	159.8	104.4
October	113.7	152.2	106.0
November	110.2	145.1	103.3
December	110.0	128.4	106.3
2015
January	107.0	112.3	105.9
February	107.9	119.2	105.7
March	109.2	112.0	108.6
April	108.7	114.9	107.4
May	107.6	114.8	106.1
June	114.1	119.0	113.1
July	115.9	112.7	116.5
August	112.4	101.5	114.6
September	111.5	98.3	114.1
October	109.5	98.3	111.7
November	109.1	90.3	112.9
December	113.0	88.3	117.8
2016
January	114.5	84.6	120.4
February	109.3	67.8	117.5
March	104.7	74.8	110.7
April	105.1	77.5	110.5
May	103.4	80.7	107.8
June	104.5	84.5	108.4
July	109.7	88.7	113.8
August	110.6	94.7	113.7
September	110.2	95.3	113.1
October	111.4	105.1	112.7
November	116.7	113.1	117.4
December	117.0	129.1	114.6
2017
January	117.3	125.2	115.7
February	114.9	126.4	112.6
March	117.9	128.8	115.7
April	118.9	127.2	117.3
May	122.1	126.2	121.3
June	117.3	112.1	118.3
July	111.3	107.9	112.0
August	110.5	110.2	110.6
September	109.9	115.3	108.9
October	112.8	119.3	111.5
November	117.3	122.7	116.3
December	117.7	130.4	115.2
2018
January	115.7	135.0	111.9
February	116.3	132.6	113.1
March	121.2	138.3	117.8
April	123.3	143.5	119.4
May	123.1	141.1	119.5
June	128.2	150.4	123.9
July	129.1	156.8	123.6
August	127.7	157.9	121.7
Source: Statistics Canada, table 12-10-0001-01.

Non-energy imports strengthened during the first half of the year, advancing 4.9% from the second half of 2017. Imports of basic and industrial chemicals and motor vehicles and parts contributed to the gains, supported by higher shipments of aircraft and consumer goods. Notably, imports of aircraft and other transportation equipment were 20% higher than in the second half of 2017. Imports of energy products also rose about 20% in the first half as higher imports of refined petroleum products offset lower production at Canadian refineries.

More recently, the trade deficit narrowed to just under $200 million in July, as energy exports rose on higher crude oil prices and imports declined.  In August, Canada posted the first merchandise trade surplus since December 2016 as both exports and imports declined.  

Steel and aluminum exports to the United States accelerated in advance of tariffs

As of June 2018, exports of steel and aluminum products to the United States were subject to tariffs of 25% and 10%, respectively. Exports of both steel and aluminum products to the United States rose sharply over several months in advance of the tariffs, before declining sharply in June. As of August, exports of steel products to the United States remained about 3% higher on a year-over-year basis, while exports of aluminium products are down about 3%.  

Retaliatory tariffs on imports of steel and aluminum products from the United States took effect in July 2018. Imports of steel products from the United States rose sharply in June prior to a sizable decline in July. As of August, imports of steel products from the United States were down almost 30% on a year-over-year basis, while imports of aluminum products were 14% higher.

Manufacturing sales advanced on broad-based gains

Total manufacturing sales were 4.1% higher in the first six months of 2018 than in the second half of last year. Higher sales of transportation equipment, petroleum products, and primary and fabricated metals contributed to the overall increase in the first half. Sales of transportation equipment increased 4.4% as motor vehicles and aerospace advanced. Sales of petroleum and coal products rose 6.9% as higher prices offset lower volumes in the first half.  

Data table for Chart 12



Data table for chart 12
Table summary
This table displays the results of Data table for chart 12 Canada, Quebec, Ontario, Alberta and British Columbia, calculated using index (January 2013 = 100) units of measure (appearing as column headers).

	Canada	Quebec	Ontario	Alberta	British Columbia
	index (January 2013 = 100)
2013
January	100.0	100.0	100.0	100.0	100.0
February	102.3	104.5	102.1	101.7	99.9
March	101.5	102.6	101.6	99.6	101.1
April	100.7	98.1	101.8	101.9	100.4
May	100.8	95.2	102.3	105.3	101.3
June	100.2	98.0	101.9	100.2	97.9
July	100.4	99.5	101.1	103.5	99.4
August	101.9	103.1	101.4	107.8	99.9
September	102.2	100.1	103.0	104.8	101.9
October	103.5	103.0	103.0	104.4	103.3
November	104.1	102.5	104.7	107.6	107.1
December	102.2	101.4	103.3	104.0	103.0
2014
January	102.4	105.2	100.5	108.5	107.3
February	105.3	106.2	105.0	110.7	104.4
March	105.3	105.7	106.3	111.8	103.5
April	105.0	106.2	105.7	108.9	108.4
May	106.9	104.8	108.7	111.3	111.6
June	107.2	106.5	107.6	112.7	111.1
July	109.6	109.2	110.6	113.8	110.9
August	106.3	107.1	105.4	111.8	111.7
September	108.7	111.6	109.8	112.6	113.5
October	108.3	109.7	109.2	113.7	113.4
November	105.9	106.0	107.2	107.6	111.9
December	107.0	106.3	109.4	106.3	116.1
2015
January	103.6	106.1	106.0	98.7	113.8
February	102.3	102.6	103.3	99.7	116.9
March	105.7	108.0	108.2	98.4	112.4
April	102.7	103.8	106.4	94.3	112.1
May	103.8	105.3	106.6	97.0	112.1
June	105.7	109.3	107.9	97.7	112.9
July	107.9	107.9	113.5	96.9	112.9
August	107.1	107.4	113.8	95.0	111.8
September	105.7	106.2	111.2	94.0	112.6
October	104.3	103.5	111.5	91.2	113.0
November	104.9	105.3	113.0	89.4	112.7
December	105.4	105.9	113.2	86.5	114.2
2016
January	109.0	109.5	119.3	83.5	115.7
February	103.7	101.8	114.1	82.9	114.5
March	102.5	100.6	110.8	82.0	117.6
April	104.1	101.4	112.6	85.8	115.0
May	103.4	104.0	109.9	84.9	117.0
June	105.2	105.6	112.2	87.7	115.9
July	105.8	105.6	113.6	87.9	119.2
August	106.6	103.7	114.2	89.7	121.5
September	107.2	106.3	115.2	88.8	121.3
October	107.1	104.6	115.5	88.6	122.6
November	108.5	108.9	114.5	91.7	124.7
December	111.0	113.7	117.0	92.6	122.8
2017
January	111.8	111.3	119.2	93.7	123.9
February	111.1	113.1	116.5	95.4	122.5
March	111.4	111.0	117.4	97.8	124.6
April	112.6	114.6	117.0	99.0	127.4
May	114.2	113.4	119.9	101.5	129.3
June	112.7	110.4	118.6	99.2	131.0
July	110.0	114.5	111.7	96.6	129.5
August	111.5	114.5	114.1	98.0	130.4
September	112.5	116.6	113.5	97.7	132.5
October	111.9	116.1	110.6	100.8	134.9
November	115.8	117.1	117.4	102.4	134.9
December	116.0	116.8	119.2	103.6	134.6
2018
January	113.4	115.3	115.2	102.9	132.6
February	116.4	119.7	119.6	101.6	131.9
March	118.5	122.9	120.3	103.2	139.9
April	117.4	118.8	120.7	97.8	138.8
May	119.1	120.2	120.3	104.5	142.8
June	120.6	124.1	121.6	108.9	144.5
July	122.0	124.1	124.2	111.1	142.8
August	121.5	125.7	121.8	110.1	143.7
Sources: Statistics Canada, tables 16-10-0047-01 and 16-10-0048-01.

Higher sales in Ontario and Quebec were mainly responsible for the growth in the first half of 2018. Total manufacturing sales in Ontario rose 4.5% led by higher sales of petroleum and coal products and motor vehicles and parts. Higher auto sales in the first half followed declines in the second half of 2017 which reflected shutdowns at assembly plants. Sales of primary and fabricated metals also supported gains in Ontario. Manufacturing sales in Quebec rose 3.6% in the first half on widespread gains, led by primary metals, paper products and fabricated metals. Manufacturing sales in Alberta rose 3.3%, as petroleum and coal products contributed to over half of the increase. Sales in British Columbia advanced 4.2% supported by higher sales of paper products and fabricated metals (Chart 12).

In July, manufacturing sales rose 1.2% on increases in transportation equipment, petroleum and coal products, and chemicals. Sales declined 0.4% in August, following three consecutive monthly gains.

Retail spending moderated across most provinces

Total retail sales were 1.1% higher in the first half of 2018 than in the second half of last year. The overall pace of retail spending slowed as sales at auto dealers over the first six months of 2018 were little changed from levels in the second half of last year. Higher sales at gasoline stations were responsible for about 60% of the overall gain in the first half, advancing on higher prices. Excluding sales at gas stations, retail spending rose 0.5% during the first half.

The pace of retail spending slowed in most provinces during the first six months of 2018. Sales in Ontario were 1.2% higher in the first half, about half the pace of growth reported in the second half of last year. Spending also slowed in British Columbia following notable gains in 2017. Gains in Quebec were similar over both six-month periods, while spending in Alberta picked up slightly in the first half of 2018.

In July, retail sales rose modestly (+0.2%) before edging down 0.1% in August.

Slower growth in home prices in Toronto and Vancouver

Increases in home prices, measured on a year-over-year basis, moderated towards mid-2018, as price growth slowed in Greater Toronto and Greater Vancouver. Based on estimates from the MLS Home Price Index, home prices rose 0.9% in the twelve months to June 2018, down from 8.4% in December 2017 (Chart 13).

Data table for Chart 13



Data table for chart 13
Table summary
This table displays the results of Data table for chart 13 Aggregate, Greater Vancouver, Calgary, Greater Toronto and Greater Montreal , calculated using index (January 2005=100) units of measure (appearing as column headers).

	Aggregate	Greater Vancouver	Calgary	Greater Toronto	Greater Montreal
	index (January 2005=100)
2005
January	100.0	100.0	100.0	100.0	100.0
February	100.9	100.6	101.0	100.9	101.2
March	101.9	101.2	102.4	101.9	102.4
April	102.8	101.8	103.6	102.7	103.1
May	103.7	103.2	105.0	103.5	103.6
June	104.5	104.7	106.1	104.0	103.9
July	105.1	106.2	107.0	104.1	104.1
August	105.8	107.5	108.1	104.4	104.5
September	106.6	109.3	109.4	104.8	105.3
October	107.3	110.0	110.8	105.2	106.0
November	107.7	110.8	112.1	105.3	106.4
December	108.2	111.7	113.9	105.4	106.4
2006
January	109.6	113.8	117.0	105.9	107.3
February	111.4	116.1	122.9	106.8	108.3
March	113.5	118.3	130.6	107.9	108.9
April	115.8	120.8	138.9	108.8	109.4
May	118.2	123.3	149.2	109.4	110.0
June	120.2	125.3	158.7	109.4	110.8
July	121.6	126.3	165.4	109.3	111.2
August	122.9	127.3	170.3	109.2	111.6
September	124.1	128.2	172.9	109.4	111.8
October	124.5	128.3	174.1	109.4	112.7
November	124.9	128.4	174.1	109.4	113.1
December	125.0	128.2	172.9	109.0	113.4
2007
January	126.4	130.0	174.1	109.5	113.9
February	128.5	131.5	177.3	111.0	114.7
March	130.6	132.9	182.3	112.2	115.4
April	132.7	134.8	186.7	113.3	116.1
May	134.9	136.7	191.0	114.5	116.9
June	136.6	138.5	193.3	115.5	117.7
July	137.3	139.7	194.6	116.0	118.8
August	137.8	141.1	195.0	116.4	119.3
September	138.0	142.2	194.6	117.0	119.6
October	138.0	142.9	193.1	117.7	120.0
November	137.7	143.5	190.9	118.1	120.5
December	137.4	144.1	188.5	118.1	120.8
2008
January	138.0	145.3	186.9	118.5	121.4
February	139.2	146.9	186.7	119.5	122.8
March	140.3	148.2	187.3	120.2	123.6
April	140.8	148.8	187.5	120.7	124.4
May	141.0	149.1	186.2	121.0	125.0
June	140.6	149.6	184.5	120.7	125.8
July	139.6	147.1	182.2	120.2	126.8
August	138.8	145.4	180.6	119.8	127.7
September	137.7	143.5	178.3	119.2	128.1
October	136.1	139.6	176.6	118.4	128.2
November	134.2	135.8	173.9	117.2	128.3
December	132.0	132.0	170.9	115.6	128.0
2009
January	130.7	131.2	167.1	113.9	128.2
February	130.0	130.1	164.4	113.2	128.2
March	129.8	129.3	163.2	113.7	128.1
April	130.6	130.9	162.1	114.9	128.3
May	131.8	132.8	162.6	116.5	128.6
June	133.1	134.7	163.8	118.3	129.1
July	134.4	136.9	165.2	120.0	129.8
August	135.8	139.2	166.7	121.7	130.4
September	137.2	141.7	167.9	123.5	131.1
October	138.3	143.0	169.2	125.1	131.9
November	139.4	144.8	170.2	126.5	132.6
December	140.0	146.4	170.9	127.3	133.1
2010
January	141.3	148.0	171.9	128.9	134.2
February	143.2	149.7	174.3	130.7	136.4
March	144.8	151.5	177.1	132.2	138.1
April	145.7	152.7	178.3	133.1	139.1
May	146.0	152.5	179.4	133.2	140.0
June	145.7	151.8	179.5	132.5	140.6
July	145.0	150.2	178.3	131.6	141.1
August	144.2	149.4	175.9	131.2	141.3
September	143.8	148.9	174.2	131.3	141.6
October	143.5	148.6	172.4	131.5	142.0
November	143.6	148.9	170.8	132.0	142.5
December	143.4	148.7	169.9	132.6	142.8
2011
January	144.2	150.3	169.1	133.7	143.8
February	145.7	151.7	170.2	135.8	145.5
March	147.4	154.5	171.1	137.3	146.7
April	148.8	157.9	172.0	138.7	147.3
May	149.8	159.5	172.7	140.1	147.5
June	150.3	160.6	173.9	140.5	147.3
July	150.8	161.2	173.8	141.2	147.6
August	151.0	161.4	173.3	141.9	147.7
September	150.9	160.9	172.5	142.3	147.9
October	150.9	160.4	171.6	143.0	148.4
November	150.7	160.0	170.8	143.3	147.8
December	150.4	159.1	169.5	143.8	146.1
2012
January	150.9	159.4	169.1	144.2	147.1
February	152.3	160.9	170.4	146.0	147.6
March	154.1	162.8	171.8	148.3	149.8
April	155.7	163.9	173.3	150.1	150.7
May	156.7	164.6	175.2	151.4	151.0
June	156.9	163.4	176.4	151.7	151.5
July	156.7	162.0	176.8	151.2	151.0
August	156.4	160.4	176.9	151.0	151.1
September	156.1	159.5	177.1	150.9	151.2
October	155.9	158.8	176.6	150.7	151.2
November	155.4	157.4	176.4	150.3	150.7
December	154.9	155.8	176.2	149.9	150.8
2013
January	155.0	155.2	177.1	149.8	150.9
February	156.1	155.8	178.8	150.8	151.9
March	157.7	156.6	180.6	152.9	153.2
April	159.2	157.9	183.0	154.6	153.8
May	160.5	157.8	185.0	156.0	156.2
June	161.0	158.8	186.2	156.6	155.1
July	161.2	158.8	187.3	156.7	154.7
August	161.3	158.7	188.0	157.0	154.7
September	161.6	158.9	188.8	157.4	154.7
October	161.9	158.7	190.8	157.8	154.7
November	162.2	159.2	191.8	158.8	154.6
December	162.0	159.1	192.5	159.1	153.9
2014
January	162.8	160.1	193.5	160.3	153.8
February	164.7	161.1	196.0	161.9	155.6
March	166.4	162.7	198.5	163.9	156.2
April	167.9	163.7	201.5	165.6	156.1
May	169.3	165.1	204.6	167.1	156.2
June	170.2	165.9	206.6	168.7	156.2
July	170.4	166.0	207.5	169.1	155.6
August	170.4	166.7	208.1	168.9	155.0
September	170.7	167.2	208.8	169.3	154.8
October	171.2	168.2	209.3	170.3	155.0
November	171.4	168.4	209.0	171.0	154.7
December	171.5	168.8	208.8	171.5	154.3
2015
January	171.9	169.4	209.4	172.1	154.5
February	173.3	171.5	208.7	174.3	155.3
March	175.2	174.6	208.2	176.8	156.8
April	176.9	177.6	206.7	179.7	157.7
May	178.4	180.7	206.6	182.0	157.7
June	179.6	183.1	207.3	183.9	158.0
July	180.4	184.9	207.2	185.1	158.3
August	180.9	187.1	207.1	185.8	157.4
September	181.7	190.5	207.1	186.9	157.0
October	182.3	193.8	206.2	187.5	157.1
November	183.1	198.1	205.2	188.3	157.0
December	183.4	200.5	203.8	188.9	157.2
2016
January	184.6	204.4	202.4	189.6	156.7
February	187.4	210.5	201.2	193.1	157.8
March	190.8	216.0	199.7	197.5	159.2
April	194.7	223.6	199.3	202.4	159.9
May	199.9	234.8	198.9	209.1	160.5
June	203.2	242.0	199.2	212.8	160.8
July	205.1	245.2	199.1	215.3	160.8
August	206.5	246.0	199.1	217.5	161.3
September	207.7	244.6	199.1	220.1	161.2
October	208.9	242.6	198.7	224.2	161.1
November	209.6	240.2	197.6	226.0	161.8
December	209.9	237.0	197.4	228.2	162.3
2017
January	212.9	236.8	197.1	232.6	162.5
February	217.4	239.5	196.9	239.8	163.0
March	225.6	243.8	197.4	254.3	164.7
April	232.3	249.7	197.9	266.0	166.0
May	234.6	256.5	199.5	268.7	166.7
June	234.2	261.3	200.4	266.7	167.5
July	230.3	266.9	201.2	254.3	168.7
August	228.3	269.4	200.7	248.5	168.8
September	228.3	271.2	200.3	247.3	169.4
October	227.9	272.2	199.2	246.1	170.3
November	227.5	273.5	198.0	245.0	170.9
December	227.6	274.7	196.5	244.6	171.1
2018
January	228.3	276.5	196.2	244.5	170.9
February	231.0	280.3	197.1	247.3	173.0
March	233.7	283.5	198.0	250.3	174.9
April	235.1	285.4	198.1	252.1	176.5
May	236.6	286.0	198.4	254.1	177.8
June	236.2	286.0	198.3	254.0	178.3
July	235.4	284.5	197.8	252.8	178.4
August	234.1	280.5	196.2	252.1	178.7
September	233.5	277.2	195.0	252.3	179.8
Source: The Canadian Real Estate Association.

In the first half of 2018, home prices in Greater Toronto declined on a year-over-year basis for the first time in almost a decade. Prices in Greater Toronto were 4.8% lower in June from levels in mid-2017. Price growth in Toronto has slowed since the second half of last year, following the introduction of the Fair Housing Plan in April 2017. Home price increases in Greater Vancouver also slowed into mid-2018. Prices in Greater Vancouver were 9.5% higher on a year-over-year basis in June, down from 15.9% at year-end 2017.

By contrast, home price increases in Greater Montreal, measured on a year-over-year basis, accelerated slightly in the first half of 2018. Prices in Greater Montreal were up 6.4% in June and have been on an upward trend since early 2017.

More recently, increases in home prices edged above 2.0% throughout the third quarter. Prices in Greater Toronto, measured on a year-over-over basis, increased in August and September, following five consecutive monthly declines.

Homebuilding moderated on slower starts in British Columbia

Monthly housing starts averaged 222,000 units (seasonally adjusted at annual rates) in the first half of 2018, down from 226,000 units in the second half of 2017. Lower starts in British Columbia were mainly responsible for the decline, partly offset by continued strength in Quebec and Ontario. Housing starts in British Columbia have generally trended lower in the first half of 2018, following higher levels in the second half of last year. Lower multi-unit urban starts in the province contributed to the slower pace of homebuilding in the first half, after notable gains in late 2017.   

More recently, housing starts slowed in the third quarter, edging below 200,000 annualized units in August and September. Average starts in Quebec slowed to 34,000 in the third quarter, down from 54,000 in the second as multi-unit starts in urban areas moderated.   

Data table for Chart 14



Data table for chart 14
Table summary
This table displays the results of Data table for chart 14 Atlantic provinces, Quebec, Ontario, Prairie provinces and British Columbia, calculated using thousands, quarterly average seasonally adjusted at annual rates units of measure (appearing as column headers).

	Atlantic provinces	Quebec	Ontario	Prairie provinces	British Columbia
	thousands, quarterly average seasonally adjusted at annual rates
2013
Q1	10.7	37.8	58.3	46.7	23.6
Q2	10.7	38.5	58.4	55.2	25.8
Q3	10.0	36.3	64.6	52.0	30.3
Q4	9.8	38.2	63.0	53.6	28.5
2014
Q1	7.4	42.1	56.1	49.1	25.2
Q2	7.2	39.1	62.8	58.9	28.4
Q3	10.3	35.5	58.1	61.6	31.2
Q4	7.7	39.7	57.3	50.4	28.4
2015
Q1	6.9	29.4	55.4	55.6	28.4
Q2	9.4	36.5	68.8	46.7	33.1
Q3	9.8	43.4	79.2	47.3	31.4
Q4	6.7	37.6	72.7	43.3	33.1
2016
Q1	6.5	39.3	74.8	31.4	44.4
Q2	7.9	36.8	75.6	35.1	44.0
Q3	8.2	39.7	73.8	36.4	41.6
Q4	7.9	38.7	75.1	36.0	38.4
2017
Q1	7.5	46.8	91.5	40.8	35.2
Q2	8.5	40.3	68.8	44.3	45.1
Q3	9.3	44.9	85.4	41.5	42.0
Q4	9.5	52.4	74.9	40.9	51.8
2018
Q1	9.8	49.0	88.4	34.9	42.5
Q2	8.8	53.7	76.1	39.9	40.5
Q3	10.8	34.2	70.2	41.8	39.4
Source: Statistics Canada, table 34-10-0158-01.

Investment in new housing construction, measured year-over-year, slowed during the first half of 2018. Total spending was 6.3% higher in June, down from 10.0% in December 2017. Outlays on single units declined on a year-over-year basis from March to June on lower spending in Ontario. Investment in single units for Canada as a whole was down 5.6% on a year-over-year basis in June. Higher spending on apartments offset lower spending on single units in the first half of 2018. Outlays on apartments rose 27.5% in the twelve months to June 2018 led by gains in Quebec. Total spending in British Columbia slowed in the first half, reflecting lower spending on single units. More recently, outlays on new housing construction continued to slow in July, edging down to 1.7% as spending on single units declined.

Residential building permits edged higher in the first half of 2018. Permits in the first half totalled $31.8 billion, up from $29.8 billion in the last half of 2017.    

Consumer inflation accelerated as energy prices strengthened

Consumer price inflation continued to accelerate gradually during the first half of 2018, supported by higher energy prices. The headline rate rose above 2.0% in February, and, after fluctuating between 2.2% and 2.3% from February to May, accelerated to 2.5% in June as energy prices were up over 12% on a year-over-year basis. Gasoline prices in June were 24.6% higher than in June of 2017. Excluding gas prices, consumer inflation was more moderate during the first half, averaging 1.7% from January to June.

Price increases for shelter, measured year-over-year, also edged higher in the first half. Mortgage interest costs rose above 3% in April, and accelerated to 4.5% in June. Conversely, the homeowners’ replacement cost index, which partly reflects changes in new home prices, decelerated on a year-over-year basis during the first half, slowing from 3.5% in December 2017 to 1.4% in June. 

Food price inflation moderated during the first half, slowing from 2.3% in January to 1.0% in May, before edging up to 1.4% at mid-year. Following declines during much of 2017, prices for clothing and footwear were higher on a year-over-year basis over much of the first half.

The Bank of Canada’s preferred measures of core inflation all edged higher early in 2018. Two of the core measures (CPI-median and CPI-trim) averaged 2.0% from February to June, while the remaining measure (CPI-common) averaged 1.9% during this period.^{Note 3}

The gap between earnings growth and consumer inflation narrowed in first half, as consumer prices have gradually accelerated since mid-2017 (Chart 15).

More recently, consumer inflation accelerated in July, reaching 3.0% for the first time since 2011. Gas prices in July were 25.4% higher on year-over-year basis, while price increases for air transportation and travel tours also supported the acceleration. Consumer inflation moderated slightly in August, and decelerated in September as the headline rate edged down to 2.2%.

Data table for Chart 15



Data table for chart 15
Table summary
This table displays the results of Data table for chart 15 Average weekly earnings and Consumer price inflation , calculated using year-over-year change (percent) units of measure (appearing as column headers).

	Average weekly earnings	Consumer price inflation
	year-over-year change (percent)
2007
January	3.8	1.1
February	3.3	2.0
March	4.3	2.3
April	4.1	2.2
May	4.6	2.2
June	5.2	2.2
July	4.9	2.2
August	4.0	1.7
September	4.5	2.5
October	4.2	2.4
November	5.1	2.5
December	3.3	2.4
2008
January	3.2	2.2
February	4.2	1.8
March	3.2	1.4
April	3.5	1.7
May	2.9	2.2
June	2.4	3.1
July	2.4	3.4
August	2.8	3.5
September	2.9	3.4
October	3.1	2.6
November	2.4	2.0
December	1.8	1.2
2009
January	2.2	1.1
February	1.8	1.4
March	1.8	1.2
April	1.1	0.4
May	1.2	0.1
June	1.4	-0.3
July	1.4	-0.9
August	1.2	-0.8
September	1.7	-0.9
October	0.9	0.1
November	1.2	1.0
December	2.4	1.3
2010
January	2.3	1.9
February	2.8	1.6
March	2.7	1.4
April	3.4	1.8
May	3.6	1.4
June	3.5	1.0
July	3.8	1.8
August	4.4	1.7
September	4.5	1.9
October	4.2	2.4
November	4.3	2.0
December	4.0	2.4
2011
January	4.6	2.3
February	3.5	2.2
March	3.4	3.3
April	2.9	3.3
May	2.9	3.7
June	2.4	3.1
July	1.8	2.7
August	1.6	3.1
September	0.9	3.2
October	2.5	2.9
November	1.9	2.9
December	1.7	2.3
2012
January	1.4	2.5
February	1.2	2.6
March	1.9	1.9
April	2.2	2.0
May	2.2	1.2
June	2.7	1.5
July	3.7	1.2
August	3.6	1.2
September	3.4	1.2
October	2.4	1.2
November	2.7	0.8
December	2.6	0.8
2013
January	1.7	0.5
February	2.8	1.2
March	1.9	1.0
April	1.6	0.4
May	2.6	0.7
June	1.9	1.2
July	1.0	1.3
August	0.8	1.1
September	1.1	1.1
October	1.4	0.7
November	2.1	0.9
December	2.4	1.2
2014
January	2.4	1.5
February	2.4	1.1
March	2.6	1.5
April	3.0	2.0
May	2.5	2.3
June	2.9	2.4
July	3.6	2.1
August	3.1	2.1
September	3.0	2.0
October	2.8	2.4
November	1.7	2.0
December	1.8	1.5
2015
January	2.7	1.0
February	2.5	1.0
March	2.7	1.2
April	2.4	0.8
May	1.3	0.9
June	1.8	1.0
July	1.5	1.3
August	0.6	1.3
September	1.5	1.0
October	1.4	1.0
November	1.4	1.4
December	1.6	1.6
2016
January	0.1	2.0
February	0.5	1.4
March	0.5	1.3
April	-0.2	1.7
May	0.7	1.5
June	0.4	1.5
July	-0.1	1.3
August	1.5	1.1
September	0.1	1.3
October	-0.1	1.5
November	0.9	1.2
December	1.4	1.5
2017
January	1.8	2.1
February	1.0	2.0
March	1.1	1.6
April	1.9	1.6
May	1.7	1.3
June	1.6	1.0
July	1.3	1.2
August	1.9	1.4
September	3.2	1.6
October	3.0	1.4
November	3.2	2.1
December	2.5	1.9
2018
January	2.8	1.7
February	3.4	2.2
March	3.1	2.3
April	2.4	2.2
May	2.8	2.2
June	2.9	2.5
July	3.0	3.0
August	Note ...: not applicable	2.8
September	Note ...: not applicable	2.2
Sources: Statistics Canada, tables 14-10-0223-01 and 18-10-0004-01.

Equities rebounded in second quarter

After strengthening during the second half of 2017, the S&P/TSX composite index fell during the first quarter before rebounding in the second. The index closed at 16,278 in June, little changed from levels at year end (+0.4%). The energy index rose 6.8% in the first half, after advancing from March to June. Information technology, industrials, materials, and the consumer discretionary index all rallied in the second quarter to post gains in the first half. The financial index was down 3.3% from levels at year-end, posting losses in four out of six months. Telecommunications, utilities and gold also registered declines in the first half.

The S&P/TSX composite index edged higher in July before an offsetting loss in August. Financials and industrials posted consecutive gains through the summer months while gold and materials declined. Energy edged higher in June before contracting 4.9% in August.    

After trading above 81 cents U.S. in late January, the value of the Canadian dollar trended down in February and March, trading at a low of 76.4 cents U.S. before strengthening to 79.7 cents in mid-April. The dollar then trended lower, trading at 75.1 cents in late June, before edging higher during the third quarter, closing at 77.2 cents U.S. at the end of September.

Measured on a trade- and competition-weighted basis, the Canadian dollar depreciated against the currencies of its major non-U.S. trading partners in January and February, before strengthening in subsequent months. By August, the value of Canada’s effective exchange rate, excluding the U.S. dollar, was similar to levels at the start of the year. The effective exchange rate continued to strengthen in September.^{Note 4}  

Bond yields rose in the first half of 2018 as the spread between short- and long-term yields narrowed. Yields on Government of Canada five-year bonds rose above 2% at the start of the year, and remained at or above the 2% mark from February to May. After edging down to 1.93% in June, five-year yields rose to 2.19% in July, their highest level since mid-2011. Ten-year bond yields were at 2.28% in July as the spread between long- and short-term yields continued to narrow. Yields on both five- and ten-year bonds continued to rise in August and September. Conventional five-year mortgage rates rose above 5% at the start of 2018 for the first time since early 2014. Rates were at 5.14% from January to April, and increased to 5.34% from May to September.

The Bank of Canada raised the policy rate to 1.25% in January 2018, and then to 1.5% in July. More recently, The Bank of Canada increased the policy rate to 1.75% in October 2018, marking the fifth 25 basis point increase in the overnight target since June 2017.     

Commodities prices buoyed by gains in energy, forestry and metals

Following gains in the second half of 2017, commodity prices continued to trend higher through the first half. Overall commodity prices were up 14.6% from year-end 2017, led by gains in energy, forestry and metals. Energy prices rose 19.9% from December to June, and were up 34% from levels in mid-2017. Excluding energy, commodity prices increased 8.7% in the first half. Prices for forestry products rose 22.3% during this period, while prices for metals and minerals were up 5.9%

Overall commodity prices declined during the third quarter on broad-based losses. Energy prices were down 4.2% in the quarter, while prices for non-energy commodities declined 10.3%.    

Household net worth edged higher while mortgage borrowing continued to slow

The net worth of households rose 1.1% in the second quarter, following a 0.3% gain in the first. Stronger equity prices in the second quarter bolstered the value of household financial assets, as domestic markets rebounded from losses during the first quarter. The value of household real estate assets continued to increase at a slower pace in the second quarter, as home resale prices continued to moderate. Total household assets in the second quarter were valued at $13.25 trillion, while total financial liabilities amounted to $2.19 trillion.

Data table for Chart 16



Data table for chart 16
Table summary
This table displays the results of Data table for chart 16 Credit market debt, Consumer credit, Non-mortgage loans and Mortgages, calculated using billions of dollars units of measure (appearing as column headers).

	Credit market debt	Consumer credit	Non-mortgage loans	Mortgages
	billions of dollars
2007
Q1	30.2	9.1	2.0	19.1
Q2	33.4	10.4	1.7	21.2
Q3	35.1	10.3	1.1	23.7
Q4	32.0	7.7	1.8	22.5
2008
Q1	34.4	12.1	1.5	20.8
Q2	31.0	9.3	1.8	20.0
Q3	28.0	9.1	1.0	17.9
Q4	21.6	5.8	1.0	14.8
2009
Q1	17.7	9.4	-0.3	8.6
Q2	25.3	11.3	0.3	13.7
Q3	26.5	9.0	1.0	16.5
Q4	32.7	13.9	-0.2	19.1
2010
Q1	29.2	9.1	1.9	18.2
Q2	23.5	1.5	0.3	21.7
Q3	19.1	6.6	0.8	11.7
Q4	24.7	7.8	-0.1	16.9
2011
Q1	18.6	4.5	1.5	12.6
Q2	25.0	5.8	0.2	19.0
Q3	21.1	4.9	-1.0	17.2
Q4	24.0	4.7	2.2	17.1
2012
Q1	21.7	1.0	2.5	18.2
Q2	18.3	4.7	1.6	12.0
Q3	20.0	6.7	-0.6	13.9
Q4	17.5	4.1	0.0	13.5
2013
Q1	24.0	6.4	2.8	14.8
Q2	18.2	3.8	0.5	13.9
Q3	18.9	4.3	1.6	13.0
Q4	17.5	5.0	0.5	12.0
2014
Q1	19.4	4.9	1.3	13.2
Q2	19.0	5.5	-0.1	13.6
Q3	21.1	4.4	1.3	15.4
Q4	20.3	4.2	1.3	14.8
2015
Q1	21.5	5.1	1.0	15.4
Q2	28.2	3.4	6.3	18.4
Q3	25.5	4.4	0.6	20.4
Q4	26.0	3.5	1.4	21.1
2016
Q1	23.4	3.9	2.9	16.6
Q2	31.2	7.6	1.8	21.8
Q3	21.6	2.9	-0.3	19.0
Q4	28.3	7.7	2.5	18.1
2017
Q1	27.5	8.6	0.5	18.4
Q2	24.6	8.9	-1.1	16.9
Q3	24.1	8.0	1.3	14.8
Q4	25.4	8.4	1.2	15.7
2018
Q1	22.2	6.0	3.4	12.8
Q2	19.6	7.7	2.6	9.3
Source: Statistics Canada, table 38-10-0238-01.

The pace of household credit market borrowing slowed in the second quarter on lower mortgage borrowing (Chart 16). Measured on a seasonally-adjusted basis, household mortgage borrowing was $9.3 billion in the second quarter, down from $12.8 billion in the first, and from $15.7 billion in the fourth quarter of 2017. Overall credit market borrowing by households in the second quarter, based on mortgage loans, non-mortgage loans, and lines of credit, was $19.6 billion, down about 20% from levels in the fourth quarter of 2017.

The ratio of household credit market debt to disposable income rose to 169.1% in the second quarter, up from 168.3% in the first. Despite the increase, the ratio of household debt to income remained slightly below levels reported through much of 2017. The household debt service ratio, which includes obligated principal payments and interest owing, edged up to 14.2% in the second quarter as interest payments rose. The ratio of household debt to household assets edged up to 16.6% in the quarter, but has generally trended lower since the 2008-2009 recession.

References

Barnett. R., K. Charbonneau and G. Poulin-Bellisle. A New Measure of the Canadian Effective Exchange Rate. Bank of Canada Staff Discussion Paper 2016-1. Ottawa: Bank of Canada.

Gellatly, G. and E. Richards. 2018. Recent Developments in the Canadian Economy: Spring 2018. Economic Insights no. 80. Statistics Canada Catalogue no. 11-626-X. Ottawa: Statistics Canada.

Hardy, V., M. Lovei and M. Patterson. 2018. Recent trends in Canada’s labour market: A rising tide or a passing wave? Labour Statistics at a Glance. Statistics Canada Catalogue no. 71-222-X2018001. Ottawa: Statistics Canada.

Statistics Canada. Bank of Canada’s preferred measures of core inflation. Last updated November 18, 2016. Available at http://www23.statcan.gc.ca/imdb-bmdi/document/2301_D63_T9_V1-eng.htm (accessed March 22, 2016).

Statistics Canada. Canadian Economic News. Last updated October 4,, 2018.  Available at: https://www.statcan.gc.ca/eng/dai/btd/cen/index (accessed October 4, 2018).

Statistics Canada. Review of Economic Statistics. Last updated October 19, 2018. Available at: https://www.statcan.gc.ca/eng/dai/economicstats (accessed October 19, 2018).