HIGHLIGHTS OF THE WEEK – April 10
- This week has been loaded with first-tier economic data releases at home and substantive central bank action abroad. In the U.S., weaker than expected purchasing manager index surveys and a jump in initial jobless claims were harbingers of a disappointing payrolls report for the month or March.
- Altogether, these indicators suggest the U.S. economy ended the first quarter on a soft note, providing a weak hand-off to a second quarter that we were already expecting would show a slower pace of expansion.
- Stock markets in Europe and the U.S. reacted negatively to the news and sovereign bond yields have fallen in tandem, as investors unwound riskier positions.
- Canada’s labour market shed 55,000 jobs in March, the largest monthly decline since the recession.
- But while shocking, the trend pace of jobcreation is actually now more in line with the underlying growth picture in Canada. Job gains have consistently outpaced the broader economy since mid-2012.
- Labour market performance has been uneven between sectors. While areas like manufacturing are facing considerable weakness, others more tied to the domestic economy, such as wholesale and retail trade, show little sign of slowing.
- Going forward, we anticipate better alignment of industry performance with general shifts in the economy. Moreover, an acceleration in economic growth in the coming quarters should lead to a slightly stronger, and more sustainable pace of job growth after today’s loss.
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