CANADA ECONOMICS: BMO Notes Households Aren't The Only Ones Saving
08:58 AM EST, 02/05/2021 (MT Newswires) -- Bank of Montreal (BMO) said that Canadian businesses had "saved" during the pandemic and asked how willing they might be to unleash pent-up demand.
While the build-up in financial savings wasn't that unusual, firms were sitting on a pile of cash, in fact, a record amount, much of it borrowed for precautionary reasons, noted the bank.
While the bank added it was generally positive on the outlook for Canadian investment, the underlying support factors were less compelling. This suggests that households (and yes home buyers) were likely to remain the bulwarks of the recovery, at least for a while.