Many Canadians have more than two months of savings to cover unforeseen costs.
Canadians are prepared for a rainy day as a recession looms.
The number of households that have two months worth of expenses socked away rose last month as did the number of households who said they had enough investments for the future.
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69 per cent of Canadians have more than two months of savings, up from 62 per cent in the previous month.
John Wright is the executive vice-president of the company. People are forced to make choices under the surface. The Bank of Canada governor may have an impact on this.
Canadians under the age of 30 seem to be the most sensitive. The most hardcore about saving was found in the age group of 18 to 34 years old.
The percentage of people who said they have enough savings to cover two months of expenses went up from October to November. Younger Canadians who said they had enough personal/ family investments and savings for the future increased by 14 percentage points. According to the report, the group was the most likely to say that their financial position is better off than last month.
When they started to be affected back in June, a lot of them made changes to their spending patterns. Wright said they pulled in on things like entertainment.
Statistics Canada said the household savings rate for the third quarter climbed to 5.7 percent from 5.1 percent, up significantly from the average savings rate of 3.4 percent recorded in the decade prior to 2020.
Charles St-Arnaud, an economist with the central banking facility and trade association for the credit unions of the province, thinks the increase in savings points to wariness on the part of consumers.
According to a research note written by St-Arnaud, households have accumulated significant savings during the Pandemic. Regardless of whether they spend, repay their debt or keep their savings, the outlook will be affected. There was an increase in saving and a decline in spending in the third quarter.
Canadians are worried about the economy.
The index was 89 in November, up from 85 in the previous month, but still close to negative sentiment.
There is a baseline for the index. Negative sentiment is indicated by a score below 100 and positive sentiment is indicated by a score above 100. A representative panel of about 1,500 people are asked a series of questions in order to find out how they feel about the economy over the next 60 days. The Canadian households outlook was tracked by Maru.
The percentage of people who think the Canadian economy is on the wrong track went down in November. The index fell to its lowest point in July of 2021.
The number of people who think the economy will improve over the next 60 days has gone up. The November result is still below average.
Sixty-six per cent of people said it was unlikely they would have a hard time making ends meet. Fourteen per cent of people said their financial position had improved, up from eight per cent a month before.
The results were a mix of good and bad.
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