TD/ Canada Trust Economic Highlights – Aug 10


United States

  • The divergence in performance between domestic and eternally oriented sectors of the American economy was on full display this week.
  • While the ISM non-manufacturing index showed the fastest acceleration in activity in a decade (up 4.3 points to 60.3), the manufacturing index fell 0.8 points (to 52.7). Trade data confirmed the divergence theme with imports rising (+1.2%) and exports falling (-0.1%).
  • The job market continues to show “some” further improvement with 215k jobs created in July and net revisions of 14k added to the previous two month tally. With only one more job report before the Federal Reserve’s September meeting, it would take a serious disappointment to stall the Fed from its first rate hike in nearly a decade.


  • Crude oil prices fell further this week, down more than $2 to less than $45 per barrel. At the same time, the loonie continued its descent, losing more than a cent vs. the U.S. dollar.
  • Exports recovered strongly in June, narrowing the trade deficit. Growth was broad-based, suggesting the potential for sustained export growth in the second half of the year.
  • The labour market remained resilient, adding 6,600 jobs in July, largely in self-employment.
  • Overall, the Canadian economy continues to evolve in a manner consistent with a return to growth in the second half of the year and into 2016.

For further information, please contact:

John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446