TORONTO — Five things to watch for in the Canadian business world in the coming week:
Statistics Canada will release its household debt data for the first quarter on Monday. The ratio of household debt to disposable income hit a record level of 186.2 per cent in the fourth quarter as mortgage borrowing rose and disposable income fell. That was up from a revised reading of 180.4 per cent for the third quarter. The reading means there was $1.86 in credit market debt for every dollar of household disposable income.
Roots first-quarter results:
Clothing retailer Roots Corp. will release its first-quarter results on Tuesday. The Toronto-based company is coming off a strong end to the year with net profits increasing 47 per cent to $18.1 million in the fourth quarter as revenues were up 22 per cent to $121.3 million. However, the company’s adjusted net losses are expected to increase to $5.3 million despite higher revenues, according to financial data firm Refinitiv.
Statistics Canada will release its monthly survey of manufacturing for April on Tuesday. Manufacturing sales rose 2.5 per cent to $70.2 billion in March, with gains coming as a result of higher prices. The March gain was led by petroleum and coal products despite lower volumes, while primary metals were up 6.5 per cent to a record high of $5.8 billion due to higher prices for unwrought aluminum and aluminum alloys and hot-rolled iron or steel products.
Canada Mortgage and Housing Corp. will release its April figures on housing starts in Canada on Wednesday. The annual pace of housing starts dipped in March compared with the prior month as urban starts of apartments, condos and other types of multiple-unit housing projects slowed. The seasonally adjusted rate of housing starts came in at 246,243 units, compared with 250,246 in February. April’s results included about two weeks from when the Bank of Canada raised its key interest rate by half a percentage point, the most in more than 20 years.
Home sales in May:
The Canadian Real Estate Association reports on the pace of home sales in May on Wednesday. Sales fell nearly 26 per cent in April compared to the prior year’s record totals as mortgage rates moved higher. Sales were down 12.6 per cent compared with March. May’s results came before the Bank of Canada approved a second-straight half a percentage point increase in rates in June.
This report by The Canadian Press was first published June 12, 2022.
Companies in this story: (TSX:ROOT)