ADAM MILLS REALTY TEAM

This Week’s Economic Highlights – October 15

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.

Full Details of the TD Canada Trust Economic Highlights Here

Canadian Highlights

  • GDP posted a trend-like 0.2% monthly gain in July on higher goods and services output. The decent monthly gain supports our above-consensus 2.4% call for third quarter growth.
  • Last Friday’s release of the 2017-18 public accounts painted a worse picture of Ontario’s fiscal situation than previously thought and sets the stage for further spending cuts.
  • New Brunswick elected a (very slim) conservative minority government on Monday, perhaps making it tougher to push legislation through government. Quebec’s provincial election is slated for next Monday. The incumbent Liberals and the poll-leading CAQ Party encouragingly share a commitment to reducing the province’s outsized debt.

U.S. Highlights

  • The Fed hiked rates by 25 bps this week as widely expected. But, the communiqué dropped the reference to policy remaining “accommodative”. Interpretations regarding this change led to volatility in bond yields and equities.
  • The debate on textual changes in the Fed statement detracts from the main point: the Fed remains committed to additional tightening – a message echoed by a broadly-unchanged rising interest rate path in the Fed dot plot.
  • Despite not being all positive, economic data reaffirmed the notion that the U.S. economy remains on solid footing. Of note, real personal spending rose 0.2% in August, keeping our tracking for Q3 consumption above 3% (ann.).