Insights and Market Perspectives

Canada and U.S. diverge on jobs

Author: Portfolio Specialist Group

September 10, 2018

“A recap of last week’s top economic news and what’s to come”

Canada loses jobs in August, U.S. adds

  • August saw a loss of 51.6k net jobs from the Canadian economy. The unemployment rate rose 0.2 percentage points to 6.0%.
  • Net losses were concentrated in Ontario, which shed 80.1k jobs, sending its unemployment rate up to 5.7% (from 5.4%).
  • The U.S. economy added 201,000 jobs, but the unemployment rate stayed at 3.9%, near an 18-year low.

Bank of Canada stays pat

  • The Bank of Canada held its key monetary policy interest rate at 1.50%, meeting market and economists’ expectations.
  • The BoC said the housing market was “beginning to stabilize as households adjust[ed] to higher interest rates and changes in housing policies,” but warned it was paying close attention to NAFTA negotiations.

U.S. manufacturing jumps in August

  • U.S. manufacturing activity in August climbed to a 14-year high fueled by an increase in production and new orders.
  • The final reading of the U.S. ISM Manufacturing Index was 63.3, up from the July reading of 58.5.
  • The JP Morgan Global Manufacturing PMI slowed for the fourth month in a row, falling to 52.5 from 52.8.

What’s to come

Canadian housing numbers and U.S. CPI and retail sales

Housing starts and new home sales highlight economic data in Canada next week. In the U.S., CPI and retail sales expenditures will be reported.

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© 2018 AGF Management Limited. All rights reserved.

Written by

Portfolio Specialist Group

AGF Investments Inc.

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