TD/ Canada Trust Economic Highlights – Sept 21


United States
• In one of the most highly anticipated meetings in years, the FOMC decided to delay liftoff from zero interest
rate policy (ZIRP), delivering a highly dovish statement despite the continuing improvement in the U.S.
• Global uncertainty appeared to weigh heavily on the Committee members’ minds, with the Fed suggesting
that potential spillovers could restrain U.S. economic activity and put further downward pressure on
inflation in the near term.
• Domestic economic data was broadly supportive of the narrative of robust growth in domestic-oriented
sectors (consumption and housing), while externally-exposed sectors (manufacturing and mining) continued
to disappoint.

• This week’s data continued to support the view of a pick-up in economic activity over the second half of
this year. Manufacturing shipments were up an outsized 1.7% in July and June’s figures were revised up
substantially. The Canadian real estate market continued to make headlines, with home prices up 8.7%
year-over-year and existing home sales holding relatively steady at record high levels.
• However, economic challenges still remain. The economic recovery will likely prove uneven, with commodity
dependent regions still facing a number of headwinds, including low oil prices and rising unemployment.
The Federal government posted a fiscal surplus in 2014, but is likely to find finances more strained going
forward, due to slower economic growth and rising employment insurance claims.

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