Canada’s weakening economy is impacting the wealth of all income groups, particularly households’ disposable income and their ability to save . Household disposable income increased by an average of 3.9 per cent in the second quarter compared with 5.9 per cent a year ago and 6.2 per cent in the first quarter of 2024, according to Statistics Canada’s

household wealth report . Disposable income for the highest earners grew at a slower-than-usual pace of 3.1 per cent “due mainly to a relatively weak gain in average wages,” the agency said in a release.

“The economic impact of U.S. trade policy has had a larger impact on trade-sensitive sectors and regions (concentrated in the manufacturing sector to date), but also across the income and wealth distribution of households,” Abbey Xu, an economist at Royal Bank of Canada, said in a note.

Statistics Canada said there were “notably weak” wage earnings in sectors such as mining, oil and gas extraction, manufacturing, trade and professional and personal services.

Even though overall household net savings grew, they nonetheless slowed, which Xu said “conceals worrying trends” because it indicates that spending is outpacing disposable income.

For the first time since 2022, the rate of net savings slowed across all income groups as gains in wages lagged an increase in household spending, especially in the areas of housing, transportation and groceries. Even the highest-income households felt the effects, though to a lesser degree than others.

The report also said lower interest rates are hurting the least wealthy while helping higher-earning Canadians.

For example, Statistics Canada estimated that lower interest rates — down two percentage points to 2.75 per cent in the second quarter from a year ago — cut the investment income of the least wealthy groups by 21 per cent, outweighing the 8.1 per cent drop in interest payments.

The savings of lower-income groups tend to be more exposed to interest rates because they sit in savings and deposit accounts. They are also more exposed to interest rates because their money tends to be in savings and deposit accounts. Furthermore, their net worth shrunk because of a drop in the value of real estate, something they are more exposed to in this market.

On the flip side, the higher-income groups benefited more from lower interest rates because their debt tends to be in vehicles with variable rates, such as lines of credit, rather than with credit cards that have a fixed rate.

High-net-worth groups also benefited the most from soaring stock markets , as their financial assets grew nearly 10 per cent, but their mortgage costs only grew by two per cent.

Overall household net worth increased 4.5 per cent in the second quarter of 2025 compared with last year.

The wealthiest households had an average net worth of $3.4 million in the second quarter, up slightly from the previous quarter, with the top one-fifth accounting for almost 65 per cent of the country’s net worth. The least wealthy had an average net worth of $86,900 and accounted for 3.3 per cent of Canada’s net worth.

Xu said the wealth gap between the top 20 per cent and bottom 40 per cent was 61.5 percentage points, with the “weaker growth in the net worth of the least wealthy” due to a middling housing market, while more wealthy households “benefited more from a rebound in financial markets.”

 Sign up here to get Posthaste delivered straight to your inbox.

Copper surged more than three per cent in London as Chinese traders returned from the long holiday break in a bullish mood, reacting to fresh signs of supply disruptions.

Futures on the London Metal Exchange jumped to a high of US$11,000 a ton, nearing an all-time high above US$11,100 struck last year, supported by strong buying on the Shanghai Futures Exchange and a buoyant start to trading as North American markets opened.

  • Today’s data: Statistics Canada releases jobs numbers for September
  • Today’s earnings: MTY Food Group Inc.
  • Meet the Trump-supporting ‘Man of Steel’ billionaire who is challenging Carney to do better on trade
  • Cut top personal tax rates and fix capital gains rules, urges CPA Ontario
  • There are lots of problems in the world. Why is the stock market doing so well?
  • Lenders’ “special offer” mortgage rates are never that special

Read the full story here. This reader, who owns some dividend-paying U.S.-listed blue chip stocks, is seeking advice on whether it’s better to hold these stocks in a tax-free savings account or a registered retirement savings plan to get the best break on taxes. FP Answers helps out here.

Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at

wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s

Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus, check out his

Financial Post on YouTube

mortgage rate page for Canada’s lowest national mortgage rates, updated daily. Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Gigi Suhanic, with additional reporting from Financial Post staff, Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report or a suggestion for this newsletter? Email us at

  • Posthaste: These two catalysts could rouse the Canadian dollar from the doldrums
  • Posthaste: The not-so good, the bad and the ugly outcomes of tariffs on Canada’s economy

posthaste@postmedia.com . Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here