TEC Canada is pleased to provide the monthly Andersen Economic Report exclusively to our members to offer professional updates on the current economic environment in Canada, the USA, and globally. As the former assistant chief of the Bank of Canada’s research department, Dr. Peter Andersen provides valuable economic insight to help you make better business decisions.
April 2024 PREVIEW:
Canada | Economic Fluctuations Amidst Population Surges| Increasing Housing Activity and Public Sector Employment | Persistent Challenges and Inflationary Concerns
Canada navigates economic fluctuations spurred by a population surge and escalating housing activity, notably in multi-unit starts, alongside a rise in public sector employment, yet it grapples with enduring challenges such as low rental vacancy rates, sluggish single-detached housing activity, and the looming pressure on future government budgets to provide economic stimulus; amidst these dynamics, with inflation risk on the horizon, the Bank of Canada is anticipated to trail behind the Federal Reserve in implementing rate cuts.
United States | Steady Economic Growth | Strong Labour Market and Housing Sector Rebound | Federal Reserve Holds Rates Amid Rising Inflation
The United States economy demonstrates steady growth, boasting a 2.3% annualized real growth rate alongside a robust labor market and a resurgence in the housing sector fueled by momentum in single-family sales. With this robust performance and an uptick in the inflation rate as indicated by the U.S. PCE index, the Federal Reserve finds itself without immediate pressure to implement rate cuts. This stable economic environment provides a solid foundation for continued growth and monetary policy decisions moving forward.
Global | Global Supply Chain Faces Price Pressures | Crude Oil Surge Impacts Fuel Prices | Housing Activity Shifts Affect Construction Material Costs
Internationally, price pressure is intensifying within supply chains, particularly exacerbated by the challenges stemming from the aftermath of the Baltimore’s Francis Scott Bridge collapse. The surge in crude oil prices persists, impacting gasoline and diesel prices, while natural gas prices reach record lows. Anticipated changes in US housing activity are poised to influence lumber prices, while cement and concrete prices are anticipated to sustain their upward trajectory.
Excited to dive into the full April 2024 Andersen Economic Report? As a valued member of TEC Canada, you can access the complete report under the ‘Resources’ section of the TEC Canada App!
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