Latest news with #economic conditions
CTV News
2 days ago
- Business
- CTV News
Albertans are the best in the country at saving money: Desjardins report
As economic conditions evolve and regional pressures shift, Canadians are saving more money, but the amount depends on which province you live in, according to a new report. As economic conditions evolve and regional pressures shift, Canadians are saving more money, but the amount depends on which province they live in, according to a new report. Desjardins' latest economic viewpoint found Albertans saved nearly nine per cent of their disposable income between 2020 and 2023, the highest in Canada, and well above the national average of under four per cent. Researchers found Albertans were able to save more as they had, on average, a household disposable income of over $110,000 while affordability in the province was among the best in the country. Savings rates are also high in Saskatchewan and Quebec with levels approaching 10 per cent of disposable income in 2024. The national average disposal household income in 2024 was $100,000. 'You have Alberta close to $120,000 household disposable income and Saskatchewan is a bit above average,' Sonny Scarfone, principal economist for Desjardins told in a Monday interview. 'I would say, for these two provinces, it's a mix of high disposable income and relatively affordable housing compared to B.C. and Ontario, especially. For Quebec, it's mostly on the spending side, just in absolute terms, spending less than other provinces.' Households in Ontario and British Columbia meanwhile are navigating higher debt levels, driven by housing costs, mortgage renewals, and slower income growth, all of which may weigh on future consumption and savings. Homeowners in the relatively more affordable Quebec housing market are less vulnerable to ongoing mortgage renewals than in other provinces. That however is starting to decline, Scarfone said. 'We do see affordability declining and more of a catching up. In absolute terms, prices have been increasing for housing, although on the relative basis that remains affordable compared to B.C. and Ontario,' he said . 'We do forecast that the Quebec savings rate will remain somewhat elevated, of course, depending on the commercial tariffs outcome there.' The average national savings rate, calculated as a percent of disposable income instead of spending, is expected to increase from 3.7 per cent in 2023 to six per cent in 2024 according to data from Statistics Canada and Desjardins Economic Studies. Alberta had a savings rate of 8.8 per cent in 2023, Quebec was at 7.8 per cent and Saskatchewan was not far behind at 7.5 per cent in 2023. Prince Edward Island was at 2.8 per cent, Ontario at 1.7 per cent, British Columbia at 0.6 per cent and Newfoundland and Labrador at 0.2 per cent. New Brunswick was down -1.6 and Nova Scotia was -3.7. Canadians expected to save more Desjardins predicts Canadians across the country will continue to save for the future despite ongoing income pressures. Albertans made over $115,000, British Columbians had $110,000 and Ontarians made $105,000 in 2024. Scarfone noted households saving more leads to higher resiliency especially in uncertain times such as U.S. President Donald Trump's trade war. 'One of the reasons we're interested in looking at saving behaviour is that in terms of uncertainty, saving for a rainy day can become self fulfilling in terms of uncertainty leads to households being more prudent in their spending,' said Scarfone. 'That prudence itself contributes to lower consumption, which is reflected by lower GDP. So that behaviour is interesting in the context that we're in today, and also it does help us in our forecast in terms of forward looking at who would be more financially resilientif a slowdown was to come.' In Quebec, the average household disposable income was just under $84,000 in 2024, comparable to New Brunswick and lower than all other provinces, yet they were one of the highest savers in the country. Changes to personal income tax Researchers expect national-level household disposable income growth to accelerate in 2025 in part supported by recent federal personal income tax changes. The government recently announced a plan to reduce the personal income tax rate from 15 per cent to 14 per cent as of July 1. It will also be the rate for most federal non-refundable tax credits. Desjardins noted Quebec and Alberta households are likely to face less pressure from mortgage renewals than households in British Columbia and Ontario. Households to spend less on luxury goods While researchers anticipate an increase in savings, they also expect a broad slowdown in consumer activity in the coming quarters, with the steepest declines in spending on luxury items. Households are likely to scale back on big-ticket purchases due to the combined impact of the ongoing trade war, through higher prices and increased uncertainty, and a soft housing market.
Yahoo
7 days ago
- Business
- Yahoo
Slight rise in accountants' Q2 confidence amid fragility: ACCA survey
The ACCA and IMA Global Economic Conditions Survey (GECS) for the second quarter of 2025 (Q2 2025) has reported a marginal rise in confidence among accountants worldwide. However, this increase does not overshadow the prevailing sentiment of fragility in the profession, with confidence levels still trailing behind historical standards. According to the survey, while there has been a slight uptick in the confidence index, reaching a peak not observed since Q3 2024, the overall mood remains cautious. The new orders and capital expenditure indices, key indicators of economic health, have both seen modest declines. These indices are hovering around their historical average and are reflective of the economic landscape following the conflict in Ukraine. The employment index has shown some resilience, edging closer to its average historical benchmark, suggesting a stabilising job market within the sector. On a regional scale, North America has witnessed an increase in confidence, with US accountants reporting a somewhat improved outlook. Despite this, the levels of confidence are still low compared with past data. In Western Europe, there has been a steady increase in confidence, with the UK experiencing a notable recovery from its all-time low in the final quarter of 2024. In stark contrast, the Asia-Pacific region has seen a sharp decline in confidence, negating the positive trends from Q1 2025. This downturn is largely attributed to the impact of significant changes in US trade policy on the global trading environment. For the first time, geopolitical instability has emerged as the primary concern among accountants when considering global risks, overtaking economic, regulatory and compliance issues, which now share the second position in terms of risk priority. Other concerns such as talent shortages and cybersecurity have diminished slightly in urgency. Climate change, fraud and supply chain risks are positioned lower on the list of priorities, indicating a strategic shift towards navigating immediate geopolitical and economic challenges. ACCA chief economist Jonathan Ashworth said: 'Global growth has generally proved quite resilient in the first half of 2025, despite the large increases in US tariffs and massive rise in uncertainty. 'While the key GECS indicators are certainly not pointing to a global economy in rude health, with confidence in particular remaining low, neither are they suggesting that a major downswing is imminent.' This month, the ACCA disclosed the pass rates for the June 2025 examinations. "Slight rise in accountants' Q2 confidence amid fragility: ACCA survey " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
Free Malaysia Today
17-07-2025
- Business
- Free Malaysia Today
Fed survey shows US firms passing some cost hikes to consumers
Federal Reserve officials closely monitored the impact of Donald Trump's tariffs as they considered further cuts to the benchmark lending rate. (EPA Images pic) WASHINGTON : Many US firms passed along 'at least a portion of cost increases' to consumers in recent weeks, as businesses faced higher prices linked to President Donald Trump's tariffs, the Federal Reserve said Wednesday. Businesses also expect costs to remain elevated, 'increasing the likelihood that consumer prices will start to rise more rapidly by late summer,' according to the central bank's 'Beige Book' survey of economic conditions. Economic activity nonetheless picked up slightly from late May through early July, the Fed said, but 'uncertainty remained elevated, contributing to ongoing caution by businesses.' Consumer spending outside autos also declined in most districts, easing slightly overall. The survey comes about two weeks before the Fed's next policy meeting in late-July, when observers expect the central bank to again stand pat on interest rates. Fed officials are closely monitoring the effects of Trump's tariffs on the world's biggest economy as they mull further reductions to the benchmark lending rate. Economists have warned that the sweeping levies could fuel inflation and weigh on growth, but the impact on costs has been muted for now. 'In all twelve Districts, businesses reported experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction,' the Fed said Wednesday. It added that 'many firms passed on at least a portion of cost increases to consumers through price hikes or surcharges,' even as some avoided doing so over fears that households might be increasingly sensitive to price changes. 'Contacts in a wide range of industries expected cost pressures to remain elevated in the coming months, increasing the likelihood that consumer prices will start to rise more rapidly by late summer,' the Fed said. The central bank added that employment edged up overall but companies were cautious with hiring due to policy uncertainty. Some districts also noted less availability of foreign-born workers due to restricting immigration policy under the Trump administration. Reports of layoffs were limited, the report said, but they were 'somewhat more common among manufacturers,' while many businesses expect to hold off big hiring and layoff decisions until uncertainty eases. While a recent uptick in consumer inflation could cause the Fed to hold interest rates steady for longer as it seeks to sustainably rein in price increases, a rapidly weakening labor market could change its calculus.
