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.
- The main event this week was Friday’s third quarter GDP report. Economic activity rose 1.3%, a deceleration from the prior quarter that masked more encouraging details.
- Early indicators for the final quarter of 2019 suggest another modest expansion is in store. Falling confidence and disruptions in several key sectors will act as headwinds to expansion.
- The Bank of Canada will be content to hold its key policy rate unchanged on Wednesday as recent economic trends remain effectively unbroken.
- A quiet, holiday-shortened week featured data that painted a picture of an economy that has slowed, but not stalled. Revisions to Q2 GDP did little to change the picture of the economy.
- Durable goods orders were a bright spot, but the Fed’s manufacturing surveys continue to point to a lack of confidence on investment spending. The Beige Book echoed this two-speed view of struggles in the factory sector, and health elsewhere.
- The consumer remains an area of strength, with spending on track to put in a solid performance in Q4, helped by healthy advances in wages and salaries and benign inflation.