HIGHLIGHTS OF THE WEEK – September 2nd
- Second quarter real GDP growth was revised to 4.2%, above the previous estimate of 4%. The underlying details revealed stronger business fixed investment, with less inventory accumulation, suggesting modest upside for business investment in the third quarter.
- Consumer confidence now sits at its highest level since September 2007. However, personal spending fell in July, after rising for five consecutive months.
- Remarks by Mario Draghi, president of the European Central Bank (ECB), last Friday led to market speculation for a possible quantitative easing program from the ECB. As a result, government bonds and equities rallied globally, with the S&P500 finishing above the 2000 mark for the first time ever.
- Canadian real GDP surged 3.1% (annualized) in 2014Q2, coming in ahead of market expectations. Consumption (+3.8%), residential investment (+11.9%) and a positive contribution from next exports all supported economic activity in the second quarter.
- The Canadian dollar rose this week, moving above the 92 U.S. cent threshold for the first time in a month. This week’s gain can be tied to the announcement of the planned merger between Burger King and Tim Horton’s as well as today’s stronger-than-expected 2014Q2 real GDP reading.
- Canadian operating profits advanced 2.6% (Q/Q) in 2014Q2, following a 3.8% gain in the first quarter. On a year-over-year basis, operating profits are up 6.8%.
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