Consumer insolvencies rate shows an annual increase by 22.5%

The recent report by Statistics Canada says consumer insolvencies were up by 22.5% in the third quarter on a year-over-year basis. This is the largest hike in 13 years.

According to the federal agency, consumer insolvency filings rose by 2.3% from the previous quarter.

Nevertheless, consumer filings fell by 25.5% from the third quarter of 2019.

Bankruptcy filings by businesses and consumers reported declines during the pandemic due to government subsidy programs.

However, when the subsidies ended, the number of filings have started growing as inflation goes up and interest rates are rising.

In September, Canada’s inflation reached 6.9%.

The latest sentiment gauge poll shows that Canadians became more pessimistic about the economy.

Last month, Maru Public Opinion’s Canadian household outlook index went down from 93 in September to 87. Such a decline means that Canadians’ mood concerning economic conditions has worsened significantly in autumn following a slight improvement seen in summer.