U.S. RETAIL SALES ADVANCE
- U.S. retail sales advanced by the widest margin in three months and in line with expectations, up 0.6%.
- Considering consumer spending accounts for two-thirds of economic activity in the U.S., September’s uptick is critical after a decline in last month’s data.
- 10 of the 13 major categories showed gains in September. Auto dealers, restaurants and gas stations were the top performers.
CANADIAN HOUSING STARTS HOLD STEADY
- Canadian housing starts rose 220,600 annualized in September, ahead of consensus in both multi-unit and single-unit categories.
- Atlantic provinces (+87%), B.C. (+39%) and Quebec (+33%) led gains. Ontario (-4%) was the only province to contract.
- Canadian housing starts data has been range bound since August 2015, though recent government intervention on mortgage qualifications may create a headwind leading into Q4.
EUROZONE INDUSTRIAL PRODUCTION PICKS UP
- Eurozone industrial production ticked up in August, growing 1.6% month-over-month and 1.8% year-over-year, somewhat easing concerns around the impact of the recent plunge in the British pound.
- Germany, the eurozone’s largest exporter to the U.K., led gains. France, Italy, Spain and the Netherlands also had strong results.
OTHER ECONOMIC NEWS
- China reported disappointing trade results with exports dropping 10% for the year and imports down 1.9% due to weaker demand and concerns around currency depreciation.
- Consumer prices in China grew 1.9% in September from a year earlier, the first annualized increase since 2012.
- FOMC minutes made available this week revealed September’s decision was a “close call” and a rate hike should be expected “fairly soon” if developments continue as expected, most likely December.
Sources: TD Economics, Business Insider, CNBC, Wall Street Journal, BMO Economics