HIGHLIGHTS OF THE WEEK – June 6th
• The weak May payrolls data acts to overshadow the otherwise positive week for the U.S. economy.
• May car sales along with a strong April report for consumer personal income and expenditures added further comfort that the U.S. economy was bouncing back from a weak first quarter.
• Although the payrolls report is notoriously volatile, the slowdown in job growth in May is likely enough to delay the Fed from raising rates for at least another month.
• A disappointing week in Canadian data was exemplified in real GDP, which missed expectations for the first quarter with growth loosing steam in February and March. This will create a weak handoff into the second quarter.
• Real GDP was revised down for all four quarters of 2015, resulting in annual GDP growth of 1.1%, slightly lower than previously estimated.
• Headline export receipts seemed positive, though data below the surface added a sour taste, as import volumes expanded even faster.
• Productivity growth provided some improvement among indicators in an otherwise dour week, increasing at the strongest rate in over a 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