Confused by all the repeated references about a pending recession?
All the while companies of every description struggle to find qualified employees.
How does a scenario of full employment translate into a recession?
Perhaps the substance behind the argument for a pending recession, can be found by examining an integral part of our shadow economy?
For instance: Consumers continue to spend at egregiously high levels.
Simultaneously interest rates continue to creep upward.
It is widely expected that the BOC will raise rates by 25 basis points before mid July. Taking the BOC rate to 4.75%
Meanwhile, Canadian Personal Debt levels have now reached $92 billion.
Canadian Household debt now hovers near 190% of disposable income.
Realistically, we now spend on average 2 $ for every $ earned.
Cars have been an indispensable part of our society since the mid-fifties. “See the USA in your Chevrolet”.
Subsequently, economists have for > 50 years relied on the level of auto loans to determine the health of the economy.
Presently auto loan defaults especially for vehicles purchased after 2020 have now reached 5%.
Levels now witnessed since the early nineties.
Remember that market economies Fluctuate.
If you have questions just reach out to any of our seasoned professionals for a confidential discussion.