This Week’s Economic Highlights – November 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

Canadian Highlights

  • Speeches by Bank of Canada officials painted a resilient picture of Canada’s economy and signaled a reluctance to ease policy barring a deterioration in economic data.
  • The week was also heavy on data but light on major surprises. Consumer price inflation came in largely as expected, up 1.9% (y/y), with the core measures also still hovering near the 2% mark.
  • Meanwhile, retail sales came in slightly better than expected (-0.1%), but manufacturing sales were weak, falling 0.7% in volume terms.

U.S. Highlights

  • Stocks were volatile this week amid signs that U.S.-China trade talks may be stalling. Cautious optimism briefly returned on Friday on news that the Chinese president was calling for the two sides to “strengthen communication”.
  • The housing data released this week was uniformly upbeat. Both construction (+3.8% m/m) and resale activity (+1.9% m/m) picked up in October, suggesting that the housing market was responding nicely to lower mortgage rates.
  • The FOMC minutes revealed that most participants judged that three rate cuts left monetary policy sufficiently accommodative to meet the Fed’s objectives, suggesting the Fed is putting back on its “data-dependence” hat.