This Week’s Economic Highlights – August 2
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.
Full Details of the TD Canada Trust Economic Highlights Here
- May GDP data revealed a third straight month of solid output growth, sending our second quarter tracking to 3% (annualized). June trade data confirmed that much of this strength will come from net exports.
- The solid second quarter is most likely to be followed by a trend-like pace of expansion. Net trade ended the quarter on a softer note, and the announcement of new U.S.-China tariffs brought trade conflict uncertainty back to a boil.
- Financial markets plunged after mixed messaging by the Federal Reserve, and later a 10% tariff on all remaining imported Chinese goods was announced to take effect in September.
- The Federal Reserve cut its policy rate by 25 basis points this week, but markets were unhappy with the lack of commitment to cut more if necessary.
- Slowing global economic growth and past tariff actions suggest that another cut is likely in September. However, escalating trade tensions may require even lower interest rates to help cushion the fallout.