Housing starts recorded around 1.5 million in spring 1997, but fell to 1.34 million in June, the lowest level recorded since January 1993. Regarding public-sector investment, the amount of public works contracted has recently picked up somewhat from the level recorded in early 1997 owing to orders included in the supplementary budget for fiscal 1996.
  Growth in China and other emerging-market economies is projected to moderate to a more sustainable pace. These developments, combined with recent declines in commodity prices, are expected to dampen global inflationary pressures.   The outlook for the Canadian economy has weakened since July, with the significantly less-favourable external environment affecting Canada through financial, confidence and trade channels.