TD/ Canada Trust Economic Highlights – Sept 15


United States

• Global equities were higher on the week, as sentiment was buoyed by the Chinese Ministry of Finance announcing plans to roll out “more forceful” fiscal policy to help stimulate economic growth.

• Chinese trade data came in much weaker than expected, with export (-5.5 y/y) growth continuing slide, while imports (-13.8% y/y) slumped by a much wider margin than expected. Foreign exchange reserves also surprised to the downside, falling by a whopping $94B following the PBOC’s move last month to allow the currency to become more free floating.

• With the higher dollar and lower oil prices still weighing on inflationary pressures and volatility in financial markets remaining elevated, we expect the Fed to stand pat at next week’s meeting, delaying rate liftoff until early next year.


• Markets stabilized over the past week, calming investor nerves. There was also very little newsworthy in the Bank of Canada’s stand-pat rate announcement.

• Housing starts jumped to a three year-high in August. Strength so far in 2015 is almost entirely concentrated in B.C. and Ontario, as lower commodity prices weigh on local economic conditions on the prairies.

• Canada’s net worth increased at a more modest pace in Q2, with gains concentrated in growth in the value of residential real estate and consumer durables. Household debt to income rose to a new high as debt levels continued to rise against a very soft income backdrop.

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