CANADA DATA: Widest Income Inequality Since 2008
Jul-17 16:15
Today’s Q1 release for the distribution household economic accounts showed even greater income inequality, primarily on account of investment gains, in what is otherwise quite a mixed release.
- Income inequality widened further, with the gap in the share of disposable income between the top 40% and bottom 40% at its widest since 2008 (higher yields on saving & invt accounts vs borrowing costs).
- There are some mixed results even within that. Households in the bottom 20% of the income distribution saw above-average Y/Y gains in disposable income in Q1 yet the middle 60% lagged as wage gains did not keep pace with higher interest payments.
- Youngest households (<35yrs) were the only age group to continually decrease their mortgage debt balances since end-2022 on affordability concerns. As such, the debt-to-income ratio for younger age groups declined for the first time in three years.
- However, the 35-44yr old cohort has the highest debt-to-income ratio of any age group (264% GDP in Q1, but still -4pps a year earlier) and saw a new record high in the interest-only debt service ratio of 12.4% of disposable income.
Change in average household mortgage debt by age group of major income earnerSource: Statistics Canada
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LOOK AHEAD: Tuesday Data Calendar: Retail Sales, IP/Cap-U, Fed Speak, TIC Flows
Jun-17 16:14
- US Data/Speaker Calendar (prior, estimate)
- Jun-18 0830 Retail Sales Advance MoM (0.0%, 0.3%)
- Jun-18 0830 Retail Sales Ex Auto MoM (0.2%, 0.2%)
- Jun-18 0830 Retail Sales Ex Auto and Gas (-0.1%, 0.4%)
- Jun-18 0830 Retail Sales Control Group (-0.3%, 0.4%)
- Jun-18 0830 NY Fed Services Business Activity (3.0, --)
- Jun-18 0830 NY Fed Williams on Fox Business
- Jun-18 0915 Industrial Production MoM (0.0%, 0.3%)
- Jun-18 0915 Capacity Utilization (78.4%, 78.6%)
- Jun-18 0915 Manufacturing (SIC) Production (-0.3%, 0.3%)
- Jun-18 1000 Business Inventories (-0.1%, 0.3%)
- Jun-18 1000 Fed's Barkin Discusses US Economy, Fed
- Jun-18 1140 Fed Collins keynote address
- Jun-18 1300 Fed Logan moderated Q&A
- Jun-18 1300 Fed Kugler Speaks on economy, monetary policy
- Jun-18 1320 Fed Musalem on economy, monetary policy
- Jun-18 1400 Chicago Fed Goolsbee panel discussion
- Jun-18 1600 Total Net TIC Flows ($102.1B, --)
- Jun-18 1600 Net Long-term TIC Flows ($100.5B, --)
STIR: Mixed SOFR Options at Midday
Jun-17 16:10
Underlying futures remain near session lows, White pack (SFRM4-SFRH5) -0.010-0.080
- +3,500 SFRU4 95.00/95.37 call spds, 2.0 vs. 94.85/0.05%
- +9,000 SFRZ5 94.50 puts, 11.5 vs. 96.065/0.14%
MNI EXCLUSIVE: Ex-Fed Board's Sheets On The U.S. Economic Outlook
Jun-17 15:59
MNI speaks with Nathan Sheets, former director of the Fed Board’s division of international finance, about the U.S. economic outlook. -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
