Latest news with #Solovieva
Yahoo
12-06-2025
- Business
- Yahoo
Canadian household wealth climbs to $17.6 trillion, but growth is slowing
Canadian households became even wealthier in the first quarter of 2025, with their net worth expanding to a collective $17.6 trillion, despite economic turbulence. Statistics Canada's latest national balance sheet, released Thursday, revealed household net worth ticked up by 0.8 per cent ($141.2 billion), but slowed from the fourth quarter of 2024 when household wealth increased by one per cent. 'As expected, the momentum behind last year's net worth gains has faded, and 2025 has started on a softer note,' wrote Toronto Dominion Bank economist Maria Solovieva in a note. 'Still, we haven't seen an outright decline in financial assets despite trade-related anxiety already visible in the early 2025.' Household wealth gains continue to be driven mainly by financial assets, which hit a new record high of $10.92 trillion despite market volatility that was especially heightened in April, when the U.S. President Donald Trump's administration launched a global trade war. The S&P 500 index dropped 4.6 per cent by the end of the first quarter of 2025. The S&P/TSX Composite index inched up 0.8 per cent after a strong performance in the second half of last year, but is down from the three per cent growth reported last quarter. Non-financial assets increased slightly by 0.6 per cent per cent from the previous quarter to $9.78 trillion, bucked by weaker growth in residential real estate values, which rose by 0.5 per cent. Statistics Canada also highlighted that the wealthiest 20 per cent of households hold more than two-thirds of financial assets and more than half of real estate. 'We have noted before that the uneven recovery of the Canadian economy means that only the top 40 per cent of income earners have been able to save since the 2020 pandemic, while lower- and middle-income households face pressures from rising living costs,' wrote Royal Bank of Canada economist Abbey Xu in a note. Canadians were servicing their debt at about the same rate as last quarter, with the ratio remaining flat at 14.4 per cent in the first quarter, the agency said. This was in part due to interest rate cuts, Xu said, but cautioned that the Bank of Canada could be nearing the end of its easing cycle. The central bank held its policy rate steady at 2.75 per cent in June. Canadians' debt-to-disposable income ratio increased slightly for the second consecutive quarter, rising from 173.5 per cent to 173.9 per cent as debt increases surpassed income gains. But Solovieva said this measure is still lower than the peak of 186 per cent reached in 2021. 'The overall picture looks better than what we expected,' Solovieva told Financial Post, but added that tariffs are still 'the name of the game.' Tariff uncertainties could push up import prices, weaken real estate performance and increase equity market volatility, straining consumer wallets, Xu said. In the meantime, a potential pullback in business investment and hiring could put pressure on household disposable income. 'Tariffs won't flow into the household balance sheet metrics directly, but they will help shape the economic forces behind it,' Xu told Financial Post. Tu Nguyen, economist at RSM Canada, said the impact of the trade war will be more pronounced in the second and third quarter balance sheets, while so far the damage has been limited to trade and trade-related industries such as manufacturing. 'Looking ahead, as wage growth stagnates and unemployment rises, we expect household net worth to rise slowly, and savings might stay steady as households pull back spending and save more in a time of heightened uncertainty,' she wrote in an email. The household savings rate was down for the second consecutive quarter, declining to 5.7 per cent, as household spending continued to surpass disposable income gains. Nguyen said this is unsurprising during periods of slow growth and noted the household savings rate could be reverting back to pre-pandemic levels of about five per cent. Canadian households were worth more than $1.025 million on average in 2024: How do you stack up? More millionaires are considering exiting Canada, survey finds 'A reversal of the trend of growing net worth would be more concerning and is possible, because it means not only are households saving less, but they are also becoming poorer,' she said. • Email: slouis@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hamilton Spectator
25-04-2025
- Business
- Hamilton Spectator
Statistics Canada says retail sales fell 0.4 per cent to $69.3B in February
OTTAWA - Retail sales dropped 0.4 per cent to $69.3 billion in February as sales fell at new car dealers, Statistics Canada said Friday. However, the agency said its early estimate for March suggested an increase of 0.7 per cent for that month, though it cautioned the figure would be revised. TD Bank economist Maria Solovieva said the bounce back in March was driven by Canadians pulling forward major purchases and stockpiling non-discretionary items ahead of incoming tariffs, so the rebound is expected to be short-lived. 'Consumers remain wary and may curb spending further until there is more certainty around employment, income prospects and inflation,' Solovieva wrote in a report. 'The Bank of Canada's latest consumer survey suggests that the negative sentiment in response to tariff-related fears has surpassed even that experienced during the pandemic, leading households to revise down their overall spending plans.' The Bank of Canada held its key interest rate steady earlier this month as governor Tiff Macklem said the changing trade picture has made producing accurate economic forecasts 'challenging.' The central bank's key policy interest rate is 2.75 per cent. Statistics Canada said Friday retail sales in February were lower in four of nine subsectors it tracks, with sales at motor vehicle and parts dealers down 2.6 per cent, including a three per cent drop at new car dealers. However, core retail sales — which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers — rose 0.5 per cent. The increase in core sales came as sales at food and beverage retailers gained 2.8 per cent while sales at supermarkets and other grocery retailers, except convenience retailers, gained 3.7 per cent. Wine and liquor retailer sales rose 2.3 per cent. Sales at general merchandise retailers gained 1.2 per cent, while furniture, home furnishings, electronics and appliances retailers dropped 2.9 per cent. In volume terms, overall retail sales fell 0.4 per cent in February. This report by The Canadian Press was first published April 25, 2025.
Yahoo
25-04-2025
- Business
- Yahoo
Statistics Canada says retail sales fell 0.4 per cent to $69.3B in February
OTTAWA — Retail sales dropped 0.4 per cent to $69.3 billion in February as sales fell at new car dealers, Statistics Canada said Friday. However, the agency said its early estimate for March suggested an increase of 0.7 per cent for that month, though it cautioned the figure would be revised. TD Bank economist Maria Solovieva said the bounce back in March was driven by Canadians pulling forward major purchases and stockpiling non-discretionary items ahead of incoming tariffs, so the rebound is expected to be short-lived. "Consumers remain wary and may curb spending further until there is more certainty around employment, income prospects and inflation," Solovieva wrote in a report. "The Bank of Canada's latest consumer survey suggests that the negative sentiment in response to tariff-related fears has surpassed even that experienced during the pandemic, leading households to revise down their overall spending plans." The Bank of Canada held its key interest rate steady earlier this month as governor Tiff Macklem said the changing trade picture has made producing accurate economic forecasts "challenging." The central bank's key policy interest rate is 2.75 per cent. Statistics Canada said Friday retail sales in February were lower in four of nine subsectors it tracks, with sales at motor vehicle and parts dealers down 2.6 per cent, including a three per cent drop at new car dealers. However, core retail sales — which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers — rose 0.5 per cent. The increase in core sales came as sales at food and beverage retailers gained 2.8 per cent while sales at supermarkets and other grocery retailers, except convenience retailers, gained 3.7 per cent. Wine and liquor retailer sales rose 2.3 per cent. Sales at general merchandise retailers gained 1.2 per cent, while furniture, home furnishings, electronics and appliances retailers dropped 2.9 per cent. In volume terms, overall retail sales fell 0.4 per cent in February. This report by The Canadian Press was first published April 25, 2025. The Canadian Press Sign in to access your portfolio
