Haven’t You Heard? Oil Provinces Still Booming

CALGARY — Housing in Canada’s oil producing regions is booming, confounding analysts who say there is an energy slump that’s hurting the overall economy.

So why is this good news for trucking?

It’s an indication there remains underlying strength in two portions of the economy that use a lot of trucks and drivers.

According to a story in the Financial Post, new home starts in Alberta, Saskatchewan, and Newfoundland and Labrador all posted gains in May, some of them double digits, while national housing starts hit a level far beyond expectations.

This possibly shows housing and the overall Canadian economy may not have been as hurt by cutbacks by oil companies as some earlier feared.

In a Financial Post interview with Randall Bartlett, a senior economist with Toronto-Dominion Bank said, “The labor market is certainly weaker in these provinces but you’re not actually seeing employment dropping in any massive way, it’s more of an adjustment in hours of work.”

Despite the positive feelings, the story warns that home starts are still 25% below before the slide in oil prices that stated nearly a year ago.

Read more about this from the Financial Post.

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