• This week’s economic data went a long way toward easing fears about a double-dip recession. Worries that real GDP could fall into negative territory in the coming quarter now seem a little overblown.
• One clear sign the economy continues to grow is the recently released data on the trade balance. The U.S. trade deficit narrowed sharply by 14 percent to $42.8 billion in July.
• The Fed’s Beige Book showed seven of the 12 districts reported modest growth or positive development from the previous reporting period.

Global Review

• The Bank of Canada (BoC) raised its overnight lending rate to 1.00 percent this week. In its statement, the BoC noted it now expects a more gradual recovery in Canada, while expressing concern that the U.S. recovery “is being held back by high unemployment.”
• The Canadian trade deficit widened to its largest gap on record in July as exports to the United States fell 2.2 percent.
• Unlike in the United States, employers in Canada have been adding to payrolls for the better part of the past year, including another 35,8oo jobs added in August.

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