This Week’s Economic Highlights – May 10
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
- Today’s Labour Force Survey release took the spotlight with an above-expectations net job gain of 106.5K that left the unemployment rate a tick lower at 5.7%.
- Canadian international trade bounced back to life in March. Unfortunately, this was eclipsed by substantial downward revisions to the prior month, resulting in an overall poor Q1.
- The economic calendar was also heavy on housing data. Starts surprised on the upside, whereas delayed home sales data from TREB showed encouraging signs of demand in Toronto.
- Effective today, the U.S. increased tariffs to 25% on $200bn worth of Chinese imports. The threat to extend a 25% tariff to virtually all Chinese imports “shortly” remains. This comes even as the two sides continue negotiations to reach a trade deal.
- The U.S. overall trade deficit edged higher in March to $50bn, even as the bilateral goods trade deficit with China declined to a five year low.
- Consumer price inflation continues to show little signs of accelerating, with both headline and core inflation around 2%. Things could change however, as tariff hikes filter through the economy.