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.
- An easing in trade tensions supported risk sentiment this week, sending the S&P/TSX Composite Index, oil prices, and the Canadian dollar higher.
- This week’s highlight was Statistics Canada’s Real GDP release. The Canadian economy expanded at a solid 3.7% (annualized) in the second quarter, but the details left a lot to be desired.
- Today’s weak GDP details support a shift in communication from the Bank of Canada, setting up an October rate cut.
- US-China trade tensions spiked last Friday as both countries announced more protectionist measures against each other, but later eased this week. Equity markets swept the escalation under the rug, making a full recovery on the week.
- Second-quarter U.S. GDP growth was little changed in a second reading, but consumption was revised up to an even better 4.7% annualized. Real spending was up 0.4% m/m in July, making for a solid start to third-quarter consumption.
- A cloud of uncertainty continues to weigh on the global economic outlook. The odds of a no-deal Brexit have increased following a planned shutdown of the UK’s Parliament from September 9th to mid-October. Meanwhile, parties are scrambling in Italy to form a new government, but the potential new coalition government stands on shaky footing.