HOUSEHOLD DEBT EDGES HIGHER

Canadian household debt burdens in the third quarter rose for the first time in a year as borrowing picked up, but historical revisions show overall levels were lower than previously estimated. Household credit market debt to disposable income ticked up to 175.9 per cent in the three months ended September, according to data released Friday by Statistics Canada. That’s up from a revised 175.4 per cent in the previous quarter.

Debt grew at an annualized pace of 1.2 per cent in the quarter, outstripping a 0.9-per-cent gain in incomes. The pickup in debt-to-income reflects more demand for loans as housing markets recovered and interest rates fell, and won’t be welcome. But revisions suggest the burden wasn’t as large as initially thought and debt levels as a share of income are still below the record 178.5 per cent hit in the first quarter of 2017.