Home construction in Thunder Bay April 2023 (Adam Riley/Acadia Broadcasting)

The Canadian economy appears to have stalled during the second quarter of 2023.

According to Stats Canada a drop of 8.2% in new construction could be seen in all of Canada, except Nova Scotia.

This in turn led to a continued falling of investment in housing, and even renovation activities.

Those declines coincided with higher borrowing costs and lower demand for mortgage funds, as the Bank of Canada raised the policy interest rate to 4.75%.

Data also shows household spending slowed dramatically from 1.2% in the first quarter to 0.1%.

There was a slight increase of 3.3% in spending on goods directed towards new trucks, vans and SUVs.

However, that was countered with declines in spending on new cars, furniture, outdoor recreation items and natural gas.

Full details can be found here.