Canada: Employee compensation surges in Q3 – NBF

Stéfane Marion, analyst at National Bank Financial, suggests that Canada’s economy stood its ground in Q3 on the back of rebound in final domestic demand which expanded an annualized 3.2%.

Key Quotes

“Consumption, business investment and residential investment were the biggest contributor to growth during the quarter. More particularly, consumer spending was supported by a robust increase in employee compensation. Wages & salaries, which account for 86% of overall compensation in Canada, rose 5.3% during the quarter.”

“For the first time in eighteen months, Canada is currently generating more growth than the U.S. for this all-important component of labour income on a year-over-year basis: 5.1% vs. 4.6%.”

“It’s encouraging to note that the growth in wages & salaries in Canada is widespread at the regional level with seven of ten provinces outgrowing the U.S. This development argues for economic resilience at the national level in the months ahead.”