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.
- The highly-anticipated January GDP report blew away expectations, with the economy expanding at a healthy 0.3% rate to begin the year. What’s more, the breadth of the expansion was impressive, with output higher in 18 of 20 industries.
- The strong GDP report brightened the mood of financial markets. It sent bond yields and the Canadian dollar higher, narrowing the inversion in the yield curve, and causing investors to pare back their bets on a rate cut this year.
- Payroll employment expanded by a healthy 71k in January, capping an overall healthy week for Canadian data.
- The U.S. economy expanded at a slower pace than previously reported in the fourth quarter (2.2% vs. 2.6%). This left annual average growth at just below the 3% mark, though Q4/Q4 they were just able to hit that psychological marker.
- Housing starts declined in February, though the sale of new homes picked up. A recent deceleration in home price growth should support an expected rebound in housing activity in the months ahead.
- The trade deficit narrowed in January, aided by a decrease in the goods deficit with China – down $5.5B. On this front, trade talks between the two countries made progress as China showed willingness to negotiate on tech-related concerns.