This Week’s Economic Highlights – January 22

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.

Full Details of the TD Canada Trust Economic Highlights Here

Canadian Highlights

  • Recent Canadian housing data painted a somber picture. Existing home sales were down 2.5% month-on-month in December, their fourth straight monthly decline. B.C. and Ontario were largely to blame.
  • Headline inflation came in ahead of market expectations at 2.0% year-on-year, due in large part to a seasonal surge in airfares. Beneath the surface there is little to get worked up about as core inflation was unchanged.
  • The U.S. shutdown is making itself felt north of the border: Statistics Canada will delay the trade data until they receive figures from their American counterparts.

U.S. Highlights

  • The government shutdown extended to its 28th day, making it the longest on record with no clear end in sight.
  • The White House upped its estimate of the impact of the government shutdown to a 0.5ppt drag on 19Q1 growth after four weeks. This is much higher than private sector estimates of between -0.1 to -0.2 ppts.
  • As expected, the Brexit withdrawal agreement was soundly rejected by UK parliament. With the March 29th deadline fast approaching, it looks increasingly likely that the UK will have no choice but to seek an extension from the EU.