TD / Canada Trust Weekly Economic Highlights – May 13
HIGHLIGHTS OF THE WEEK – May 13
- It was a quiet week on the U.S. macroeconomic news front, however the stock markets made headlines with both S&P 500 and the Dow Jones rising to record levels.
- The effects of Fed’s quantitative easing program are also being felt beyond Wall Street. Based on the latest Senior Loan Officer Survey, credit availability continues to improve, with lending terms easing for small businesses and households.
- In terms of households demand for credit, prime residential mortgages continue to strengthen in tandem with the recovery in the housing market. Non-revolving credit is still advancing at a strong pace, meanwhile growth of revolving credit, which includes credit card debt, remains soft.
- The Canadian economy created 13,000 jobs in April, putting the 3-month and 6-month average job gain at 2,900 and 12,400. The unemployment rate held steady at 7.2%.
- Full-time jobs were up a more hearty (+36,000), but mostly driven by government hiring (+34,200), while the private sector shed jobs for the third time in four months.
- This week’s housing starts report helped solidify our view that construction activity is now cooling from the unsustainable pace recorded in 2011 and 2012. Homebuilders broke ground on 175,000 units in April of this year – continuing a moderating trend that began in April of 2012.
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