This Week’s Economic Highlights – November 1

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

  • In no mood to trick investors during this Halloween week, the Bank of Canada left the overnight at 1.75%. However, the accompanying statement provided plenty of frights while tilting dovish and opening the door to eventual rate cuts.
  • Data this week wasn’t too scary, with a modest headline gain in August GDP masking better details, and employment holding up well in the same month according to the lagged (but less volatile) SEPH survey.
  • Alongside weaker-than-expected economic growth, an unanticipated tightening in financial conditions (flagged as a risk by the Bank of Canada) could spur interest rates cuts by the Bank in the months ahead.

U.S. Highlights

  • U.S. economic activity decelerated in the third quarter to a 1.9% annual pace from 2% in the second quarter, with consumer spending doing much of the heavy lifting.
  • The Federal Reserve implemented its third, and likely final, interest rate cut of this year, citing muted inflation pressures and staid global developments. The bar for future rate cuts, however, has shifted higher.
  • PCE inflation continues to undershoot the Fed’s 2% target, with the headline measure at 1.3% year-on-year and core at 1.7%