TD/ Canada Trust Economic Highlights – Sept 8


United States

  • It was another wild ride for financial markets this week. With disappointing PMI’s out of China, equity markets began the week on a sour note, they rebounded on a dovish-sounding ECB, but ultimately fell back into negative territory by the week’s close.
  • The data flow continues to point to a growing U.S. economy, but one that is not immune to global headwinds. This was illustrated in ISM purchasing manager reports where the non-manufacturing index remained close to a decade high, but the manufacturing index fell to its lowest level in almost two years.
  • The employment report was a mixed bag. Payroll growth disappointed with 173k jobs created, below the consensus forecast for 217k. This was offset by 44k in upward revisions and faster growth in wages and hours worked. Just as important, the unemployment rate fell 0.2 percentage points to 5.1%.


  • Canadian real GDP declined 0.5% (annualized) in 2015Q2, marking the second consecutive quarterly contraction in economic output. The solid monthly reading for June (+0.5% M/M) points to a return to positive real GDP growth in Q3.
  • Employment in Canada advanced by 12,000 net new jobs in August, with all the job gains concentrated in full-time positions. The unemployment rate increased to 7.0% from 6.8% as more people were looking for work.
  • Canada’s trade deficit narrowed to $593 million in July, from $811 million in June. Exports (+2.3%) ad­vanced at a faster rate than imports (+1.7%).

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