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.
- We received mixed signals this week, with household credit growth moderating on the back of an outright decline in consumer credit, while the labour market kicked off 2019 with a bang.
- The signal being sent by the credit data deserves attention, but is not overly concerning at present. A period of household adjustment may moderate economic growth, but it also means stronger balance sheets – a welcome development.
- The strong labour market, including a new record for monthly private sector hiring is encouraging, indicating that the household adjustment is taking place against a solid economic backdrop.
- Global central banks have followed the cue set by the Fed, as they too take a break from tighter monetary policy to assess mounting risks to global growth.
- Activity in the U.S. services sector cooled a bit in January as government-funding uncertainty and trade tensions weighed on business sentiment. Nonetheless, non-manufacturing activity remained well in expansion territory.
- Senior U.S. trade officials are off to Beijing next week to work on a trade deal, even as a meeting between the two countries’ presidents seems unlikely before the March 2nd deadline. All eyes will be on Washington to avert yet another government shutdown as the temporary funding gap expires on February 15th.