Canadian inflation looks less transitory by the day, as costs surge higher and higher. Statistics Canada (Stat Can) data shows the consumer price index (CPI) made a sharp climb in August. Growth is now well in excess of the base effect, and not just an illusion. One of the biggest drivers has been shelter costs, […]
Young Canadians aren’t interested in joining the trades, and it’s a big problem. RBC Economics took a look at skilled workers, and the anticipated shortage. The labor shortage isn’t just due to a large demographic cliff though. Not enough young adults are attracted to the field, nor are new immigrants. This squeeze can result in […]
Canadian building investment is falling, and it’s due to a lack of housing investment. Statistics Canada (Stat Can) data shows total building investment fell in July. Taking a dive into the data, we can see this is due entirely to falling residential investment. While it dropped, no need to worry about an inventory squeeze. The […]
Canadian household indicators are showing their debt problems are rapidly resurfacing. Statistics Canada (Stat Can) data shows the ratio of household debt to disposable income surged in Q2 2021. This measure indicates debt is growing faster than the rate of income. Debt as a ratio of income has actually never seen such fast annual growth […]
Canadian debt is dirt cheap, but it won’t be this cheap forever, warns BMO. Douglas Porter, the bank’s chief economist, expects the cost of borrowing to remain “low for long.” He just doesn’t see it being quite as low as the current stimulus driven environment. As governments taper stimulus to fund its spending, borrowing rates […]
Canadian politicians promise to “fix” housing affordability if elected this year. Just one problem — all of their plans will increase home prices, not make them more affordable. That’s the take from Finder‘s 15-person monetary policy panel. The Fintech regularly polls Canada’s top economists for their take on monetary policy. This time they asked for […]
The Canadian economy still has a long way to go before it’s recovered — possibly further than thought. RBC economist Josh Nye said today’s Bank of Canada (BoC) rate decision was widely expected. The central bank made no changes, reiterating the importance of quantitative ease (QE). Canada’s largest bank sees a risk of QE tapering […]
Canada’s household savings rate soared, as generous benefits met few places to spend. At least, that was the narrative. Statistics Canada (Stat Can) data shows most households saved very little in 2020. The top two-fifths of incomes are responsible for Canada’s elevated savings rate. The bottom two-fifths of households didn’t save anything at all, but […]
The Canadian economy defied odds, and became more dependent on real estate investment. Statistics Canada (Stat Can) residential investment data shows a surge in current dollars for Q2 2021. The most recent quarter showed a massive climb — much bigger than GDP in general. This pushed residential investment’s share of the economy to a new […]
Canada’s housing market giveth and taketh away. BMO senior economist Sal Guatieri dropped some notes on plummeting residential investment today. The segment of gross domestic product (GDP) fell so fast in Q2 2021, it held the whole economy back. The bank warned this is just the beginning for housing investment, as it comes back to […]
