Canadians fall deeper into debt: StatsCan
The Canadian Press
Published Tuesday, September 13, 2011 9:09PM EDT
OTTAWA - The net worth of Canadian households fell for the first time in a year last spring and indebtedness grew, Statistics Canada says.
Household worth fell 0.3 per cent to $184,300 in the second quarter, the first reversal of fortune since the second quarter of 2010.
The agency says the retreat occurred because of a loss in the value of pension assets and equities as the Toronto Stock Exchange index pulled back 5.9 per cent. That more than offset the increase in home values.
The second quarter also saw the ratio of household credit market debt to disposable income rise to 149 per cent, from 147 per cent.
The Bank of Canada has often warned Canadians to be wary of taking on too much debt in the current low-interest rate environment. But households may take some comfort in the latest forecasts that suggest the central bank is at least a year way from raising interest rates.
Meanwhile, national worth -- which includes corporations and governments -- increased 1.2 per cent to $6.4 trillion in the second quarter, the agency said.