a recent report<\/a> from Desjardins Economics.<\/p>\nDesjardins Deputy Chief Economist Mathieu D\u2019Anjou notes in the economic study that while disposable household income shot up 3.4 percent in 2017, at last year\u2019s close, growth had only inched higher by 0.3 percent.<\/p>\n\n
\u201cSlower disposable household income growth seems to be relegating the Canadian economy to much more constrained growth than in the United States,\u201d he writes.<\/p>\n
So what does that mean for the housing market, a key driver of the Canadian economy?<\/p>\n
\u201cIt\u2019s the same thing for the housing market. It\u2019s better for the housing market to have incomes growing at 4 percent\u2026 like we had recently,\u201d D\u2019Anjou tells Livabl.<\/p>\n
D\u2019Anjou says national wage growth is being pulled down by Alberta\u2019s weakened job market. \u201cI think for Quebec and Ontario, it\u2019s not that bad,\u201d he continues.<\/p>\n
In the report, D\u2019Anjou notes that although Canadian consumers are spending less, savings aren\u2019t improving. In fact, around 1 percent of disposable income is being put towards savings, remaining relatively static.<\/p>\n
\u201cLess favourable trends in the labour market, especially the surprising moderation of wage growth, and the end of the stimulus from the budgetary measures announced by the Trudeau government early in his term, fuelled this slowdown in disposable household income growth,\u201d he writes.<\/p>\n
There are some signs that the situation may be improving, though. The labour market is picking up.<\/p>\n
In February, Canada gained 56,000 jobs, with most of the increase made up of full-time positions, according to Statistics Canada\u2019s Labour Force Survey, February 2019<\/a>.<\/p>\n\u201cThe recent thrust in job creation in Canada could have a more positive impact on income, especially if it is accompanied by faster wage growth. We will have to keep a close eye on this situation,\u201d D\u2019Anjou concludes.<\/p>\n
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