TD / Canada Trust Economic Highlights – April 22


United States

  • Economic data was relatively positive this week with industrial production in particular showing a strong bounce back from its winter lull.
  • Consumer price inflation accelerated in March to 1.5% on a year-over-year basis, from 1.1% in February. Core consumer prices excluding food and energy also ticked up from 1.6% to 1.7% in March.
  • Housing starts rose to 946k in March, but came in below expectations. Single-family housing construction rose 6.0%, but was offset by a 3.1% decline in multifamily starts.
  • In a speech on monetary policy, Fed Chair Janet Yellen expressed optimism on the pace of economic recovery, but also reemphasized a lower-for-longer message focused on returning inflation to the Fed’s target of 2.0%.


  • As had been expected, the Bank of Canada held firm on its overnight rate, keeping the target at 1%. The Bank also left the balance of risks to the outlook unchanged from its February communique.
  • The consumer price index (CPI) rose to 1.5% (Y/Y) in March, from 1.1% in February. The core measure of inflation came in 0.1 points higher in March at 1.3% (Y/Y), well below the Bank of Canada’s 2.0% target.
  • Canadian existing home sales increased 1% (M/M) in March and now sit almost 5% above year-ago levels. Average resale prices rose 6% Y/Y, decelerating from the 8-10% price gains recorded since July.
  • Canadian manufacturing sales increased 1.4% in February, after rising 0.8% in January. The February increase reflected solid gains in the auto and petroleum and coal industries.

For further information, please contact:

John Maveety Manager, Residential Mortgages – Greater Ottawa Area
TD Canada Trust T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446