ADAM MILLS REALTY TEAM

TD Canada Trust Weekly Economic Highlights – Nov. 26

HIGHLIGHTS OF THE WEEK – Nov. 26/12

United States
  • Markets and businesses are rightly worried about the outcome of fiscal negotiations in Washington, but behind the scenes are signs that U.S. growth ismoving to an accelerated trajectory.
  • The biggest headwind to economic growth – the housing market – is becoming a tailwind. This week, existing home sales and new housing starts both increased, beating market expectations
  • The turnaround in housing offers an opportunity for policy makers. As Chairman Bernanke said in a speech this week, “cooperation and creativity to deliver fiscal clarity…could help make the new year a very good one for the American economy.”
Canada
  • Financial markets’ mood started to improve this week, with equity markets making up some lost ground and the Canadian dollar back above parity.
  • Canadian data, however, shone a light on the biggest domestic risk to the economy – heavily indebted consumers – and the impact on Canadian retailers.
  • Consumers can no longer be the engine of economic growth. Add high levels of cross-border shopping and limited pricing power to that modest