TD / Canada Trust Weekly Economic Highlights – Sept. 18


United States

  • This was a fairly light week with only a handful of data releases on the U.S. economic calendar. However, things were hardly quiet in financial markets. In the first half of the week, the S&P 500 posted its biggest three-day gain since the beginning of the year.
  • Two pieces of data out this week – consumer credit and retail sales – revealed that consumption remains skewed toward durable goods as services continue to under perform.
  • Next week highlights will include the much-anticipated meeting of the FOMC, where the fate of the quan­titative easing program is expected to be revealed. Once that is out of the way, debates in Washington regarding next year’s budget and the upcoming fiscal ceiling will move into the spotlight.


  • Housing starts fell to 180K units on an annualized basis in August, a 6.6% decrease from the month prior. Yet, the six-month moving average remained steady at 187K units.
  • Home prices rose for the sixth consecutive month as the 11-city Teranet House Price Index (HPI) increased by 0.6% month-over-month in August.
  • Household leverage, as measured by household credit market debt to disposable income, increased to 163.4% in Q2, up from 162.1% in Q1. The showing snapped the streak of two consecutive quarterly declines, but in level terms, the ratio has stabilized over the past year.
  • The National Household Survey (NHS) release confirmed what we had previously observed only anecdot­ally – one-quarter of Canadians devote more than 30% of their total income to shelter costs, surpassing the threshold at which housing becomes unaffordable.

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]