This Week’s Economic Highlights – December 13
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
- There were no major shocks in the economic data this week. Homebuilding ticked up a hair in November, and the cost of servicing household debt hit a new all-time high last quarter.
- Externally, amidst the crush of international headlines, a breakthrough on the ‘new-NAFTA’ was announced, addressing some lingering U.S. concerns. There is now a clear path to full ratification in early-2020.
- Bank of Canada Governor Poloz delivered his final speech of 2019. Careful neutrality in the remarks gave way to a hint of hawkishness during his media availability, suggesting the bar to future easing remains high.
- The U.S. and China reached a partial trade deal. The U.S. will reduce tariffs from 15% to 7.5% on $120 billion of Chinese imports and cancel the tariffs that were to be imposed on December 15th. In exchange, China will increase its imports of U.S. goods and services.
- American consumption remains healthy. While retail sales were soft in November, spending on services continues to be robust, leaving consumption tracking at 2-2.5% for the fourth quarter of 2019.
- The Conservative party won a majority in the UK election, paving the way for Brexit in January 2020. The next step of securing a trade deal with the EU will likely be more challenging.