FXstreet.com (Barcelona) - Canadian housing sector does not seem to be affected by the credit squeeze that is affecting construction worldwide, according to the latest report on housing starts published by the Canadian Mortgage and Housing Corporation, which shows a strong increase on housing starts in May.

The seasonally adjusted annual rate of housing starts has increased 3.5% from April to May, to an annual rate of 221,300 units, from 213,900 units in April, a well larger than expected amount, as market analysts expected an annual rate of 217,500.

Urban starts increased 4.0% to 192,800 units from April to may, while urban multiples increased 1.9% to 116,100 in may, and singles rose 7.3% to 76,700 units. By regions, starts of new houses increased in all of them but in Ontario where starts decreased by 7.4% to 67,600.