Canada Spending Fueled by Nearly 9% Gain in After-Tax Income
Dow Jones
Aug 28
0956 ET - Canada's solid 3.3% annualized growth in 2Q was partly driven by consumer spending, which remains resilient despite the dark clouds posed by the Trump administration's trade policy. Royce Mendes, managing director at Desjardins Capital Markets, notes that after-tax income in Canada rose sharply, 8.8% in the three-month period. That in turn helped households to sock away more in savings, he says, as the household savings rate rose in 2Q to 3.7%. Statistics Canada says the after-tax income gain was mainly due to higher wages, and new sales-tax credits the federal government introduced to offset increased food costs.
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