This Week’s Economic Highlights – December 14

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

Canadian Highlights

  • Canadian builders broke ground on a few more homes in November, as starts beat expectations, reaching 216k in November, a 4.4% increase on the month.
  • This week also revealed that Canadians are more stretched than previously thought. Statistics Canada reported the household debt-to-income ratio at 177.5% in Q3, revising the level up markedly on downward revisions to household incomes.
  • TD Economics’ revised quarterly forecast sees real GDP growth slowing from 2.1% this year to 1.8% in 2019 in the face of mounting headwinds, notably oil sector disruptions.

U.S. Highlights

  • After some optimism early in the week, financial market sentiment soured as focus shifted back to fears of an escalation in trade tensions, Brexit uncertainty, and a potential economic downturn in 2019.
  • The U.S. consumer remained unbowed in November, with consumer spending now tracking above 3% annualized in Q4. Inflation has cooled in line with oil prices, which should help to support real spending going forward.
  • The FOMC makes its final decision of 2019 next week, and a hike is universally expected. We will be watching closely to see how members’ views have changed about how many hikes will ultimately be required in this cycle