TD Canada Trust provides a weekly economic highlight report that we choose to share with our clients and those who follow us. This is an easy place to stay current on the broader economic conditions in Canada and the U.S. so that you are better informed to make stronger decisions around your own real estate investments. We are always available to answer any questions or walk through your real estate investment goals for now or in the future.
- Growing gloom internationally raises the risk of external weakness seeping into domestic activity.
- Meanwhile, existing home sales came in stronger than expected in July, pointing to an increasingly healthy Canadian housing market.
- The Bank of Canada faces a tough road ahead as it weighs a stronger domestic economy against weaker global conditions. The Bank will keep a close eye on upcoming data as it assesses the balance of risks to its inflation and growth forecasts.
- There was no summer vacation from financial market volatility this week as investors were increasingly worried that the global economy is about to slip into recession.
- The difference between the 10 and 2-Year Treasury yields turned briefly negative this week, sending a signal that bond investors expect the economy to get worse before it gets better. While the risks of a recession have risen, we are not there yet.
- The U.S. data was mixed this week, with evidence that tariffs are impacting prices and the factory sector. Consumers continue to be the bright spot, and there were signs that housing may be firming too.