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.
- After several months of surprisingly strong monthly job growth, the Canadian labour market shed 1.8k jobs in October. The unemployment rate remained unchanged at 5.5%, just a tenth of a percentage point above its historical nadir.
- Job growth has been mainly full time, but people are working fewer hours. Average hours worked has been falling, leading to a more modest increase in total labor hours.
- Provincial economic accounts for 2018 confirm the disparity in growth between provinces, with energy-rich provinces lagging the pack. This is also playing out in labour markets where unemployment rates remain elevated relative to the levels of just five years ago.
- It was a relatively quiet week for economic data. The trade deficit narrowed a bit in September, but new tariffs appear to have weighed on both exports and imports. The ISM non-manufacturing index followed its manufacturing counterpart higher in October, with the recent trend indicating a stabilization in activity.
- Trade negotiations continued to dominate headlines. Comments from the U.S. Commerce Secretary suggest that the U.S. is likely to avoid a major escalation in trade tensions with Europe next week over autos.
- The interim U.S.-China trade deal is unlikely to be signed this month, but the mid-December tariffs still appear likely to be scrapped. Pres. Trump poured cold water on the notion that there was an agreement on removing existing tariffs.