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Report from
North America
April drop in construction of single-family homes
US housing starts declined in April as construction of
single-family homes dropped by the most in nearly a year,
suggesting builders are growing cautious amid higher
mortgage rates. New residential construction decreased
2.8% last month to an annualised rate of 1.47 million
homes, according to figures from the U.S. Department of
Commerce. The decrease followed a 12% surge to 1.507
million units in March.
Starts of single-family homes declined 9%, the most since
August, to an annualised 930,000 pace. Multifamily
housing starts, however, rose more than 10% to the highest
level since May 2023.
The report also showed single-family permits, a leading
indicator of future construction, fell 2.6% to the lowest
level since August.
The figures suggest homebuilders remain focused on
working off a still-elevated inventory of new properties.
While sales have increased in recent months, most were
homes that were already under construction or finished.
Numerous challenges remain for a sustained pickup in
homebuilding, including rising mortgage rates, flagging
consumer confidence and stretched household budgets.
“Affordability challenges will keep homeownership out of
reach for the median household and will keep builders
focused on bringing smaller and more affordable units to
market,” said Stuart Paul from Bloomberg Economics.
New construction fell in the South but rose in the other
three US regions on increases in multifamily projects.
Single-family starts dropped in all four regions.
In Canada, after a surprise decline in March, April housing
activity showed a much-needed rise. Housing starts across
Canada came in at a seasonally adjusted annualized rate of
279,317 units, a 17% gain from the month before, the
Canada Mortgage and Housing Corp. reported. This was
slightly stronger than the 245,000 residential housing
project starts the market had forecast, according to
economists at TD Securities.
See: https://www.cmhc-schl.gc.ca/professionals/housing-
markets-data-and-research/housing-data/data-tables/housing-
market-data/monthly-housing-starts-construction-data-tables
and
https://www.census.gov/construction/nrc/index.html
and
https://www.marketwatch.com/story/canada-housing-starts-
jump-17-in-april-ae5c7f04
Lackluster spring home buying season
Sales of previously occupied US homes were essentially
flat in April, another lackluster showing for the housing
market during what is traditionally its busiest time of the
year.
Existing home sales edged up 0.2% last month from
March to a seasonally adjusted annual rate of 4.02 million
units, the National Association of Realtors reported. Sales
were unchanged compared to April last year. The latest
sales figure fell short of the roughly 4.12 million pace
economists were expecting, according to FactSet.
Sales have been hovering close to a 4-million annual pace
now going back to 2023, far short of the historic norm that
is closer to 5.2 million. The US housing market has been
in a slump since 2022, when mortgage rates began to
climb from pandemic-era lows.
Sales of previously occupied US homes were essentially
flat last year, stuck at a 30-year low. They have remained
sluggish so far this year, declining from a year earlier
through the first three months of this year.
“This spring homebuying season, so far all the way
through April, we can say we are not predicting any
increase compared to one year ago,” said Lawrence Yun,
NAR’s chief economist.
Regionally, sales in the Northeast were unchanged month-
over-month at an annual rate of 450,000, down 8.2% year-
over-year. Sales in the Midwest rose 2.2% in April to an
annual rate of 950,000, down 1.0% year-over-year. The
South saw a 0.5% increase in sales month-over-month to
an annual rate of 1.87 million, up 2.7% over last April.
And in the West, sales decreased 2.6% in April to an
annual rate of 750,000, unchanged from last year.
See: https://www.nar.realtor/newsroom/nar-existing-home-sales-
report-shows-0-2-increase-in-april
GDP grew 2.0% in first quarter of 2026
US economic growth rebounded in the first quarter of
2026, boosted in part by a recovery following the previous
quarter’s government shutdown.
Gross domestic product increased at a 2% annualized rate,
according to the Commerce Department's advance
estimate released on April 30. The department will revise
it, like all GDP estimates, as more data becomes available.
The reading was stronger than the department’s latest
estimate of 0.5% GDP growth in the fourth quarter of
2025 and came in much stronger than the first quarter of
2025, when GDP contracted by 0.5%.
The 2% expansion in the first quarter of this year
"reflected upturns in government spending and exports,
and an acceleration in investment that were partly offset
by a deceleration in consumer spending," the Commerce
Department said. Imports, which are a subtraction in the
calculation of GDP, also increased, it added.
The day before the report’s release, Federal Reserve Chair
Jerome Powell said the economy has been “quite resilient’'
despite inflationary shocks tied to the Iran war.
“As long as the economy continues to grow and
companies are able to grow earnings, we can see higher
stock prices even in the face of higher energy prices and
inflation, however, the longer the war drags on, the more
investors will grow nervous and we could see some
pullbacks as fears ebb and flow,” Chief Investment Officer
for Northlight Asset Management Chris Zaccarelli said.
See: https://www.bea.gov/news/2026/gdp-advance-estimate-1st-
quarter-2026
and
https://www.msn.com/en-us/money/markets/us-economic-
growth-rebounds-in-first-quarter-of-2026/ar-
AA225HVC?ocid=BingNewsVerp
Despite war, US job market showed more gains in April
Job creation remained solid in April, as businesses
shrugged off uncertainty brought on by the war in Iran and
higher gas prices.
US employers added 115,000 jobs last month, surpassing
expectations. The unemployment rate remained at 4.3
percent. The jobs tally was taken in mid-April, as
employers were still evaluating the impact of the war in
Iran. If higher gas prices persist and consumers pull back
more broadly to compensate, economists anticipate that
could dampen job creation and lift the unemployment rate.
April was the second consecutive month of strong job
growth, suggesting that the labor market could be breaking
out of its monthslong low-hire, low-fire stasis.
The March numbers were revised up modestly, to 185,000.
But the overall picture is not quite as chipper, and it is not
clear whether robust recent hiring will translate into
sustained momentum. The last three months have
averaged 48,000 jobs added, a relatively glacial pace.
The labor market has become increasingly dependent on
health care, which has powered job creation for months.
Employment showed little change over the month in other
major industries, including construction and
manufacturing.
See:
https://www.bls.gov/news.release/archives/empsit_03062026.ht
m
and
https://www.nytimes.com/live/2026/05/08/business/jobs-report-
economy
Consumer sentiment falls to a fresh low
Surging gas prices due to the Iran war sent consumer
sentiment to a new low in the early part of May, according
to a University of Michigan survey. The university’s
closely watched Survey of Consumers posted a 48.2
preliminary reading, down 3.2% from April’s prior record
swoon and off 7.7% from a year ago.
Economists surveyed by Dow Jones had been looking for
49.7. Inflation fears were the primary driver of the
continued trend lower in consumer attitudes.
The trend, which also saw the current conditions index
tumble 9%, is “owing to a surge in concerns about high
prices both for personal finances as well as buying
conditions for major purchases,” the survey’s director,
Joanne Hsu, said.
One-third of respondents mentioned gas prices as the
biggest cause of concern. However, another one-third also
cited tariffs.
“Taken together, consumers continue to feel buffeted by
cost pressures, led by soaring prices at the pump,” Hsu
said. “Middle East developments are unlikely to
meaningfully boost sentiment until supply disruptions
have been fully resolved and energy prices fall.”
See: https://www.sca.isr.umich.edu/
and
https://www.cnbc.com/2026/05/08/consumer-sentiment-falls-to-
fresh-record-low-in-may-as-surging-gas-prices-hit-outlook.html
US manufacturing expanded for fourth month but
wood products sector lagged
While economic activity in the manufacturing sector
expanded in April for the fourth consecutive month, the
wood products sector continues to fall behind, say the
nation’s supply executives in the latest ISM
Manufacturing PMI Report. The Manufacturing PMI
registered 52.7 percent in April, the same reading as
March. A reading of over 50 indicates expansion.
Thirteen of the manufacturing industries surveyed by ISM
reported growth in April while only three reported
contracting over the month. The Wood Products sector
was among the three shrinking industries with reported
declines in new orders, production, employment,
inventories and imports. The Furniture & Related Products
sector was among the industries reporting growth in April,
but it ranked last among the 13 in its growth.
See: https://www.ismworld.org/supply-management-news-and-
reports/reports/ism-pmi-reports/pmi/december/
and
https://www.woodworkingnetwork.com/news/woodworking-
industry-news/manufacturing-pmi-527-wood-industry-dips-
while-furniture-gains
Cabinet sales fell 9.4% in first quarter
US cabinet manufacturers reported sales of US$512.2
million in the first quarter of 2026, a figure 9.4% lower
than that from the first quarter of last year, according to
figures from the Kitchen Cabinet Manufacturers
Association. Custom sales were down 10.5%, Semi-
custom sales fell 8.3%, and Stock sales fell 11.7% for the
quarter. March sales rose 13.9% over the previous month
to reach US$189.9 million but were still 7.7% lower than
in March 2025. Sales volume for the first quarter was
down 10.9% versus the first quarter of last year.
See: https://kcma.org/insights/february-2026-trend-business-
report
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