TD/ Canada Trust Economic Highlights – August 22


United States
• The week offered plenty of data to gauge the strength of the global economic recovery, with the generally
dovish rhetoric from major central banks, including the Fed, supporting global equities which also got a
lift from the surge in oil prices.
• International data remained soft, solidifying expectations for further stimulative action from both the ECB
and BoJ as soon as next month.
• U.S. data remained resilient, particularly so for domestically oriented sectors of the economy. Still, externally
exposed manufacturing and mining activity appeared to rebound, suggesting that the worst may be
behind these externally-exposed sectors.

• Economic data in Canada this week were mixed, with a healthy manufacturing report playing off against
weak retail sales numbers.
• All signs point to a sizeable contraction in economic output for Q2, followed by a rebound. The stalled
rotation away from commodity and housing-led growth will likely resume in the second half of the year.
• The rotation will play out against a weaker economic backdrop. The result is likely to be slower growth in
coming years than Canadians have been used to.

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