TD / Canada Trust Weekly Economic Highlights – Nov. 26


United States

  • It was a relatively quiet week on the U.S. data front, with the only notable releases being September international trade and the wholesale inventory report. International trade surprised to the downside – with the trade deficit widening to $41.8 billion – while inventories posted a sizeable monthly gain of 0.4%.
  • Weaker third quarter economic growth reared its head in both the euro zone and Japan. Euro zone real GDP grew by a dismal 0.4% (annualized), while third quarter growth in Japan decelerated to 1.9% (annualized) half of what it grew by between April-June.
  • Federal Reserve Chair Nominee Janet Yellen offered relatively dovish remarks to the Senate Banking Committee on Thursday, but provided no new guidance into future Fed policy.


  • While net trade dragged on real GDP growth in Q3, momentum improved towards the end of the quarter. Canadian exports rose 1.8% in September, with volumes up an equal 1.9%. Real manufacturing shipments rose 1.0%, which will provide a nice boost to monthly real GDP in September.
  • The release of CREA’s housing data this week will hopefully throw some cold water on any bubble talk that re-emerged lately. Canadian home sales fell 3.2% in October and prices edged down 1.0%. Overall, we would characterize October’s performance as stabilization.
  • The department of finance also provided a good news story this week confirming that progress in eliminating its deficit is running ahead of schedule.

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

[email protected]