Canadian Insolvency Filings Surge to Second-Highest June on Record

Canada's insolvency filings have seen significant growth in recent years, and June was no exception. According to data from the Office of the Superintendent of Bankruptcy Canada (OSB), total Canadian insolvency filings climbed to 13,254 in June, up 11.5% (+1.4k) from last year and more than double (+100.8%) since 2020. This marks the sixth straight year of growth and the second-biggest June ever recorded, with only June 2009 coming in larger.

The surge isn't just a monthly anomaly; the growth in filings has been consistent over the past year. There were 150,505 filings in the 12 months ending in June, up 5.3% (+7.6k) from a year prior. This trend is particularly notable because it stands in contrast to some better-than-expected data that policymakers are touting.

Insolvency filings can be seen as a lagging indicator of economic pressure, rather than a direct measure of the economy's health. As such, growth in these numbers may not necessarily mean further erosion is in the pipeline. However, it does highlight the presence of existing economic pressures that were likely dismissed or downplayed.