Job growth has finally picked up in the U.S. and business spending is rising.
Consumers are more confident, opening their wallets for the best Christmas season in four years. American consumers, having increased their savings rate during the recession, will likely now sustain their savings rate at above 5% of disposable income. Canadians, having experienced a much milder recession, did not tighten their belts as aggressively.
With the recent tightening in mortgage standards, Ottawa is discouraging Canadians from becoming over-leveraged. The savings rate in Canada is likely to average about 4½% this year, rising to about 5% next year. Read on… the complete article is available from BMO Capital Markets Economics by following this link.