Trump 2.0: The First 100 Days | Canada

What to Watch: Inflation Expectations Prices Ticking up Among Manufacturers

Impact on CRE

• Inflation expectations have surged in the last month as tariff talk has escalated.

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• Notably, Canadian manufacturers are now reporting greater rates of price increases.

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• Consumer inflation expectations are also rising, at the same time that sentiment is taking a hit. Households take into account rising costs in their purchasing decisions; for example, we saw a surge in automobile purchases ahead of the tariffs since consumers expect prices to rise imminently. • Tariffs will soon send consumer prices higher, leading to more pessimistic sentiment and potentially less retail spending. announcements were already on the rise, and a consumer pullback will only dampen retail CRE demand further. • Industrial CRE demand will also take a step back if tariffs aren’t pulled back soon, as supply chains recalibrate to the more subdued spending outlook. • Retail store closures and bankruptcy

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Diffusion Index

Source: Richard Ivey School of Business - Purchasing Management Association of Canada (PMAC)

Cushman & Wakefield