This Week’s Economic Highlights – February 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
- Oil prices and a broader U.S. dollar sell off helped lift the loonie a touch this week.
- Retail sales volumes rebounded in December, but the fourth quarter as a whole was flat, consistent with our view of subdued consumer spending at the end of the year.
- In a speech this week, Bank of Canada Governor Stephen Poloz discussed the limitations of monetary policy, and reaffirmed the data dependent path for getting interest rates back to neutral.
- The barrage of negative U.S. data continued this week, with weakness in December durable goods orders and a decline in existing home sales in January.
- Still, markets were hopeful that progress would be made in the China-U.S. trade talks, which could help remove a cloud of uncertainty that has weighed on investment.
- The data affirms that the Fed made the right choice to shift off of gradual rate increases, and wait patiently to see if the U.S. economy remains resilient in the face of global weakness. We expect these signs to become clearer in the spring.