TD Canada Trust provides a weekly economic highlight report that we choose to share with our clients and those who follow us. This is an easy place to stay current on the broader economic conditions in Canada and the U.S. so that you are better informed to make stronger decisions around your own real estate investments. We are always available to answer any questions or walk through your real estate investment goals for now or in the future.
- Canadian markets were fairly quiet this week, reflecting the lack of domestic catalysts.
- The little economic data we got was housing-focused. Starts recovered in March, but are down markedly for the quarter as a whole, while building permits fell for a second month in February. Signs point to a sector still in a soft patch.
- Ontario’s new government laid out its highly anticipated first budget. The planned path back to balance will take five years and hinges largely on expenditure control, holding program spending growth to 1% per year.
- Inflation pressures remain benign, as headline consumer prices rose just 1.9% year-on-year in March, and core prices came in at 2.0%. These numbers reinforce the Fed’s ‘patience’ stance that was reiterated in its March FOMC minutes.
- US-China trade negotiations are progressing with China appearing to make further concessions on tech-related issues, and the two sides agreeing on an enforcement mechanism.
- Trade talks with the EU, however, are set to become more contentious as the U.S. threatens tariffs on EU imports following a ruling from the WTO on a longstanding disagreement.