Amid a drop in credit card balances, the growth of household debt slowed in April, according to new data from Statistics Canada.
The national statistical agency reported that total household borrowing rose by $10.1 billion in April to $3.1 trillion. Household debt was up 0.3% in the month, slowing from the 0.4% growth recorded in March.
The slower pace reflected a decline in the growth of non-mortgage debt, which rose just 0.1% in April, compared with 0.4% in March.
In particular, households’ credit card debt declined by 0.1% in April — the first decrease in credit card balances since November, Statistics Canada said.
Other forms of non-mortgage borrowing also rose modestly, up 0.1% in April. However, mortgage debt growth picked up, rising 0.4% in April compared with 0.3% in March.
This stronger increase in mortgage debt came even as the Bank of Canada held rates steady during the month.
Statistics Canada also reported that the total debt of private non-financial corporations decreased by 0.9% in April, falling by $20.6 billion to $2.2 trillion. The trend of declining corporate debt picked up speed, following a 0.1% contraction in March.
The agency said the value of debt security liabilities dropped by $15.5 billion in April, “mostly due to exchange rate fluctuations.”