MEMO / NOTEDESERVICE Information previously distributed

MEMO / NOTE DE SERVICE
Information previously distributed / Information distribué auparavant
TO: Chair and Members of Finance and Economic Development Committee
DESTINATAIRE : Président et membres du Comité des finances et du développement
économique
FROM: John Smit, Acting Director
Economic Development Branch
Contact :
Danyelle Bélanger, Research Assistant
Economic Development Branch
613-580-2424 extension 24248
[email protected]
EXPÉDITEUR : John Smit, Directeur par
intérim
Direction du développement
économique
Personne ressource :
Danyelle Bélanger, Adjointe, recherche
Direction du développement
économique
613-580-2424 poste 24248
[email protected]
DATE: September 27, 2016
27 septembre 2016
FILE NUMBER: ACS2016-PIE-EDI-0004
SUBJECT: ECONOMIC DEVELOPMENT UPDATE – SEPTEMBER 2016
OBJET : LE POINT SUR LE DÉVELOPPEMENT ÉCONOMIQUE – SEPTEMBRE 2016
PURPOSE
The purpose of the Economic Development Update is to provide members of Finance
and Economic Development Committee with the most up-to-date and relevant
information on Ottawa’s economy and related markets.
BACKGROUND
The City’s Economic Development Branch analyzes a series of publicly available key
economic, financial and business indicators for Ottawa. Every month, the Economic
Development Update examines trends in Ottawa’s labour market (employment and
unemployment), consumer prices, housing starts, home sales, and construction.
Data reported in the September 2016 Economic Development Updates were adapted
from the following sources:
1. Statistics Canada’s “Real Gross Domestic Product” results for Canada for June
2016;
2. Statistics Canada’s “Consumer Price Index” results for the Ontario portion of the
Ottawa-Gatineau CMA for July 2016;
3. Statistics Canada’s “Labour Force Survey” results for the Ontario portion of the
Ottawa-Gatineau Census Metropolitan Area (CMA) for July 2016;
4. Canada Mortgage and Housing Corporation (CMHC) “Starts and Completions
Survey” and “Market Absorption Survey” results for the Ontario portion of the
Ottawa-Gatineau CMA for July 2016;
5. Canadian Real Estate Association (CREA) results for the Ontario portion of the
Ottawa-Gatineau CMA for July;
6. Colliers International’s “Ottawa Office Report” for Second Quarter 2016; and
7. Statistics Canada’s “Building Permits Survey” results for the Ontario portion of
the Ottawa-Gatineau CMA for June 2016.
DISCUSSION
According to Statistics Canada, Canadian real gross domestic product (GDP) fell by an
annualized 1.6 per cent in the second quarter of 2016, largely as a result of the Fort
McMurray wildfires. On a more positive note, GDP rose by a healthy 0.6 per cent in
June 2016, fully reversing the decline observed in May 2016. The Bank of Canada
expects June GDP gains to spur substantial growth in the second half of 2016.
In terms of employment, the Canadian economy shed 31,200 jobs in July 2016, which
led to a slight uptick in the unemployment rate (+0.1 per cent to 6.9 per cent). Ottawa’s
economy, on the other hand, added 2,500 jobs in July 2016, representing the sixth
consecutive monthly increase. Since July of last year, local employment has grown by
3.1 per cent (+16,300 jobs). These cumulative gains have driven the unemployment rate
down to its lowest level of 2016 as the rate retreated to 6.3 per cent in July, down from
6.7 per cent the previous month.
Looking at the local real estate market, Ottawa homebuilders began construction on 411
units (i.e., housing starts) in July 2016, down from 525 units the previous. On the resale
market, local real estate agents sold 1,491 properties over the same period. While the
numbers are down from the high-watermark in June (1,985 properties), July sales
nevertheless exceeded July 2015 sales (1,430 properties) and the five-year average for
the month of July (1,413 properties).
Finally, Ottawa issued building permits totalling $214.9 million in June 2016, which
represents a 3.8 per cent increase from May 2016 and a 12.4 per cent increase from
June 2015. In the first half of 2016, there were a total of $1.328 billion in building
permits issued in Ottawa, which outpaced the same period of 2015 by 29.3 per cent.
CONCLUSION
Economic Development staff will continue to monitor these and other trends related to
the Ottawa economy and related markets.
John Smit
A/Director, Economic Development Branch
CC: Steve Kanellakos, City Manager
John Moser, A/General Manager, Planning, Infrastructure and Economic
Development Department
SUPPORTING DOCUMENTATION
Document 1 – Economic Development Update for the City of Ottawa, September 2016
Document 2 – Le point sur le développement économique pour la Ville d’Ottawa,
Septembre 2016