OTTAWA--The net worth of Canadian households rose in the July-to-September period, marking the seventh increase in the last eight quarters, buoyed by stock market gains.
Meanwhile, a closely watched gauge of household debt fell in the third quarter to a new post-pandemic low. This is a sign that, overall, households appear to be managing higher costs for goods and services, as well as elevated borrowing costs.
Household net worth rose 1.7% in the third quarter to 17.29 trillion Canadian dollars, or the equivalent of $12.21 trillion, Statistics Canada said Thursday. The data agency said the average net worth per household was steady at just over C$1 million in the third quarter.
Households' financial assets increased 3.9% in the third quarter to reach a record high C$10.64 trillion. The data agency said stock-market gains offset a decline in the value of residential real estate.
Meanwhile, the ratio of credit-market debt to after-tax income, on a seasonally adjusted basis, fell in the third quarter to 173.11%. This marks the lowest level since the second quarter of 2020, or the start of the Covid-19 pandemic, the data agency said. Excluding the pandemic period, the debt-to-disposable income ratio is at a nine-year low.
The household-debt service ratio, or total debt payments as a share of after-tax income, fell to 14.72% in the July-to-September period. That marks the third straight quarterly decline from a peak of 15.11% in late 2023.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
12-12-24 0929ET
