Despite ongoing trade-related uncertainty, Canada’s economic outlook is expected to improve this year, says Fitch Ratings. For instance, data on employment and wages, which signalled a rebound in the second quarter, “points to a labour market slowly on the mend,” it said. Consumer spending rose by 0.3% in the first quarter and represented a “relative bright spot,” Fitch said. Indeed, high fuel prices remains a downside risk to the outlook, it noted — as does ongoing trade uncertainty with the U.S.Against that backdrop, Fitch is maintaining its deteriorating outlook for Canadian credit card and auto loan asset-backed securities (ABS). “Delinquencies in the broader market have shown early signs of stabilization, although rising consumer insolvencies, still above pre-pandemic levels, remain a key downside risk,” Fitch noted.