TD/ Canada Trust Economic Highlights – Aug 18

HIGHLIGHTS OF THE WEEK – Aug 18

United States

  • The U.S. economy appears to be sustaining the robust economic momentum kick-started in the second quarter. Labor market fundamentals continue to improve. Job openings from the JOLTs survey surpassed their pre-recession peak, and details of the NFIB small business optimism survey were also encouraging.
  • Economic news from across the Atlantic disappointed this week. The Eurozone’s economy stalled in Q2, as none of the bloc’s largest economies – Germany, France nor Italy – posted any growth.
  • Lack of growth in Europe alongside heightened geopolitical concerns over the situation in eastern Ukraine have led to increased demand for the safest bonds, sending German, U.K. and U.S. yields lower.

Canada

  • The July jobs report was revised up to show gains of 41,700 jobs in July, from an initial report of 200. With these revisions, the jobs report is in line with the overall positive tone in recent data.
  • Markets reaction to the report was mixed, with the Canadian dollar gaining approximately 0.2 cents, al­though the TSX composite index was largely unchanged at this morning’s open.
  • Household spending has rebounded sharply in the second quarter, following the impact of the strong winter weather on Q1 consumption, as well as increasing wealth and asset prices. However, spending growth is expected to moderate somewhat in the second half of the year.

For further information, please contact:

John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446
John.Maveety@td.com