“The fact that it’s starting to increase could be an early warning signal,” says expert.
Following on the heels of Canada’s devastating jobs report in which over 70,000 jobs were lost, there’s more signs of serous trouble for Canada’s economy.
According to TransUnion Canada, credit delinquencies are on the rise.
As reported by BNNBloomberg, “The credit reporting firm said Monday 5.54 per cent of consumers were 90 or more days past due on at least one non-mortgage credit product in the third quarter, compared with 5.25 per cent in the same period in 2018. The 29 basis point increase is the largest since 2012, and comes after several years of declining or little changed delinquency rates.”
Matt Fabian of TransUnion said “We are seeing a definitive shift” in delinquency rates. The fact that it’s starting to increase could be an early warning signal.”
“Price inflation for everyday consumer items such as food and clothing are accelerating, and costs for servicing debt are higher, meaning for the average Canadian, there’s “generally a tightening in the wallet,” added Fabian.
Worryingly, there TransUnion cites more evidence showing the rising burden of debt, with new auto loans increasingly in the “below-prime” category, a 3.8% in the number of accounts entering collections, and total Canadian credit card debt now surpassing $100 billion for the first time in history.
And things could get even worse, as Fabian noted that the big loss of jobs in October could lead to rising delinquencies coming up, as delinquencies and unemployment are collected.
The evidence continues piling up showing Canada’s economy weakening and in serious trouble, and a federal government focused on strangling the energy industry, piling on regulations, and hiking the carbon tax is only making things worse.