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.
- It was a relatively quiet week for Canadian financial markets, with most of the news flow directed to the federal election.
- Existing home sales posted a seventh consecutive monthly gain (0.6%), further reaffirming that the correction in housing markets that started in early 2018 is now in the rear-view mirror.
- Other data releases had little in the way of surprises. Inflation measures continued to hover near the 2% mark, whereas manufacturing shipments posted a decent 0.8% gain.
- The economic data was subdued this week. Retail sales fell 0.3% in September, ending their six month growth streak. Industrial production also fell. Multifamily starts took a step back, but single-family starts fared better.
- The Fed’s Beige Book confirmed that economic activity has moderated in the period covering mid-August through September. Tariffs, prolonged uncertainty and slower global growth were deepening the manufacturing slump and pushing businesses to trim their growth outlooks.
- Internationally, the U.K. and the E.U. have agreed on the new Brexit deal, but the bigger hurdle of getting the deal through parliament still looms. Meanwhile, China’s economy grew 6.0% (y/y) in Q3, the slowest pace since 1992.