TD/Canada Trust Economic Highlights – June 9


           United States

  • This week’s data provided plenty of evidence that U.S. economic growth is back on track after a disap­pointing start of the year. Activity improved in both manufacturing and non-manufacturing sectors in May, new vehicle sales surged to 16.7M, but most importantly the labor market churned out 217k new jobs.

  • Besides the economic data, markets were also treated to an historic policy announcement by the Euro­pean Central Bank (ECB), which moved ahead with the myriad of monetary policy measures aimed at encouraging lending, nudging down the euro and rekindling inflation and economic growth.

  • The news out of Europe, in combination with positive economic data, buoyed U.S. equity markets and led to a modest sell-off in Treasuries.


  • The Canadian economy added a lacklustre 26,000 jobs in May, recovering almost all the jobs lost in April. Looking through the monthly volatility, the economy has generated only modest growth in employment (+0.5% y/y) over the last year. The unemployment rate, which inched up to 7.0% in May, has been stuck in a 6.9% to 7.2% range since October 2012.

  • At the same time, Canada’s international merchandise trade balance slipped back into a deficit position ($638 million) in April after recording surpluses in both February ($813 million) and March ($766 million).

  • Along with still-benign core inflation, these releases support the Bank of Canada’s decision this week to leave its short term interest rate unchanged at 1.00%. The dovish tone of the BOC statement helped to lead the dollar lower against most major currencies.

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