TD / Canada Trust Economic Highlights – April 1
HIGHLIGHTS OF THE WEEK – April 1/13
It was another good week for the U.S. stock market. Reacting to a resolution of the Cypriot banking crisis and to positive U.S. economic data, both Dow Jones and the S&P 500 reached a new record high.
Stock markets are soaring, home prices are rising and the economy is adding jobs, but consumer confidence took a hit in March as the reality of higher payroll taxes and smaller paychecks sank in.
Strengthening fundamentals should eventually brighten consumers moods, but with sequestration beginning to bite in April, fiscal policy will continue to cloud the near term outlook.
Canadian economic momentum appears to be picking up in 2013. Real GDP advanced 0.2% in January, broadly in line with our view that economic growth accelerated in the first quarter of this year.
Consumer prices rose sharply in February, led by gasoline, food and auto prices. Still, on an annual basis, headline inflation is running at 1.2%, while core inflation is running at just 1.4% – at the lower end of the Bank of Canada’s 1% to 3% target range.
- While the process has been slow and painful given international economic headwinds, the transition back to export-led growth appears to be a key theme unfolding in the first quarter of this year, supported by a revival in U.S. demand.
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