Housing Slump Bad News for Canadian Economy

The spectacular gains in U.S. housing prices over the past few years have come to a grinding halt, forcing households to curtail spending sharply. Weaker housing demand will have a ripple effect across the American economy, yet the United States will not fall into recession next year because of strong growth in business investment and exports.

Weaker U.S. home building and consumer spending will have repercussions
for the Canadian economy, especially in sectors that supply the residential
construction industry.