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 Bank of Canada left the overnight rate at 1.75% this week. Its statement made clear that it is not looking to increase rates anytime soon, noting in its follow up communication that it “need[s] time to better understand what’s happening”.
- Housing data confirm the Canadian economic malaise continued into the first quarter with home sales down in Toronto and Vancouver and housing starts plunging across the country in February.
- Despite the near-universal bad economic news, the Canadian job market continued to add jobs at an astonishing rate in February. Some 55.9k jobs were added, while the unemployment rate remained near a cyclical low of 5.8% as more people entered the labour market.
- This week started off on an upbeat note. An uptick in the ISM non-manufacturing index got the ball rolling, with the headline rising by 3.0 points to 59.7 in February.
- In a nice twist to the recent doom and gloom, housing data was also encouraging. Sales of new homes rose 3.6% in December, and housing starts surged by 18.6% in January.
- The positive economic news faced a setback on Friday as the payroll report showed job growth slowing to just 20k in February. The soft payroll print is unlikely to stay, but works to reinforce the Federal Reserve’s current “patient” approach.