Economic and Investment Update – July 2023
Key Highlights
- The Consumer Price Index rose 3.4 per cent year over year in May following a 4.4 per cent increase in April.
- The national unemployment rate rose by 0.2 percent to 5.4 per cent in June.
- Real Gross Domestic Product (GDP) is unchanged in April following a 0.1 per cent increase in March.
- The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in May led by Retail Trade, Professional, Scientific & Technical Services, Information and Cultural Industries
- ventureLAB announces the launch of the Hardware Angel Network to support the growth of the hardware and deep-tech sectors in York Region by catalyzing investment in early-stage hardware and MedTech.
- Vaughan-headquartered Kontrol Technologies is selected by new customer in the USA for emissions monitoring solutions.
SELECT Economic Indicators
The Consumer Price Index rose 3.4 per cent year over year in May following a 4.4 per cent increase in April.
The Consumer Price Index rose 3.4 per cent year-over-year in May following a 4.4 per cent year-over-year increase in April. This was the smallest increase in inflation since June 2021. April’s consumer price index increase was primarily driven by mortgage interest costs – excluding mortgage interest cost, the CPI rose 2.5 per cent in May, following a 3.7 per cent increase in April.
The deceleration of inflation in May was attributed to smaller increases in the prices of durable goods such as furniture and passenger vehicles, coinciding directly with easing supply chain pressures. Grocery and food prices remain elevated; notably, with restaurant food prices accelerating at a faster year-over-year pace in May, rising by 6.8 per cent.
The national unemployment rate rises to 0.2 per cent to 5.4 per cent in June.
In June employment increased by 60,000, driven by increases in full-time work, with unemployment rising 0.2 per cent from May. Employment gains in June were concentrated among men aged 15 to 24 years of age (+31,000). Industries which saw employment gains were wholesale and retail trade, manufacturing, healthcare and social assistance, and transportation and warehousing.
In Ontario, employment grew 0.7 per cent in June following a decline in May. Overall employment gains since September 2022 totalled 236,000, or 3.1 per cent, in Ontario. Census Metropolitan Areas (CMAs) recorded higher shares of total employment growth which coincided with the growth of the number of people searching for work, which increased to 65.9 per cent. The Toronto CMA, which includes Vaughan, saw employment increases in June of 42,000.
Average hourly wages rose 4.2 per cent (+$1.32 to $33.12) on a year-over-year basis in June, following an increase of 5.1 per cent in May (not seasonally adjusted).
Real Gross Domestic Product (GDP) is unchanged in April following a 0.1 per cent increase in March.
Real Gross Domestic Product (GDP) was unchanged in April, following a 0.1 per cent increase in March. Real GDP measures the inflation adjusted value of goods and services produced in the economy and is an indicator of economic growth.
Construction activity increased by 0.4 per cent in April driven by increases in non-residential building construction, where engineering and other construction activities drove the increase. Non-residential building construction rose for the fifth month by 1.4 per cent in April.
Vaughan remains a city on the rise and a destination for investment. In 2022, the City issued nearly $1.75 billion in building permits and ranked top 10 in Canada by value of permits for non-residential construction. In fact, Vaughan’s industrial market is one of the busiest in the country – ranking 4th nationally by value of industrial permits – and breaking City records with a record value of $556.5 million in 2022
Manufacturing declined for the first time in four months in April by 0.6 per cent with declines seen in both durable and non-durable manufacturing.
Advanced estimates indicate that GDP is expected to increase 0.4 per cent in May, with increases in manufacturing, wholesale and retail trade, and real estate leading the month-over-month increase.
LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES
The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in May by Retail Trade, Professional, Scientific & Technical Services, and Information and Cultural Industries.
ED’s Small Business and Entrepreneurship top five industries seeking consultations in May were:
- Retail Trade (19 per cent)
- Professional Scientific and Technical Services (17 per cent)
- Information and Cultural Industries (13 per cent)
- Accommodation and Food Services (10 per cent)
- Arts Entertainment and Recreation (8 per cent)
ventureLAB announces the launch of the Hardware Angel Network to support the growth of the hardware and deep-tech sectors in York Region by catalyzing investment in early-stage hardware and MedTech companies.
The Hardware Angel Network was announced in June, and is the only hardware and deep-tech focused investor network in Canada supporting pre-seed and seed-stage startups. The network will support the growth of the hardware and deep-tech sectors in York Region by providing opportunities for mutually beneficial partnerships, syndication of deals, and collaboration on due diligence to support investment in early-stage Canadian companies throughout the ecosystem. ventureLAB is the provincially designated regional innovation centre (RIC) for York Region and is Canada’s only lab and incubator for hardware and semiconductor companies.
In March 2023, ventureLAB unveiled its Hardware Catalyst Initiative (HCI) for MedTech, in collaboration with Sterling Industries, to support the growth of medical hardware companies in Vaughan. The new MedTech incubator, located within Vaughan-based Sterling Industries, offers growing technology companies access to critical resources, product development support and medical device design expertise. As an end-to-end contract manufacturer and assembler of medical devices and components, Sterling Industries is a proven industry leader with manufacturing facilities and distribution channels in the U.S. and Europe. Sterling Industries is contributing essential equipment, top technical talent, and industry-leading mentorship to the project.
By establishing the MedTech HCI and creating this new investment network, ventureLAB is introducing critical resources and support for the growth and development of innovative medical device companies in Vaughan.
Kontrol Technologies is selected by new customer in the USA for emissions monitoring solutions.
Vaughan-headquartered Kontrol Technologies is a leader in smart building technology through IoT, Cloud and SaaS technology. Kontrol Technologies provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.
The company was recently selected by a large medical facility in the USA for a Continuous Emission Measurement (CEM) solution. “Continuous emission compliance is a source of organic growth for Kontrol as we continue to add new customers and applications,” says Paul Ghezzi, CEO Kontrol Technologies.