Softer Housing Market, Higher Incomes Help Canadians Trim Debt Ratios
- Debt growth at slowest pace on record outside of Covid shock
- Credit market debt-to-income ratio falls to 180.5% in 2Q
A worker at the site of a residential building under construction in Montreal.
Photographer: Graham Hughes/BloombergThis article is for subscribers only.
Rising incomes and a slower housing market helped Canada’s households modestly repair their balance sheets in the second quarter, even as economic growth stalled.
Canadians’ disposable incomes rose 2.6% from the first quarter, according to data released Wednesday by Statistics Canada. At the same time, households pared their growth in credit market debt, which increased just 0.6% — the slowest pace on record outside the depths of the pandemic.