Prime Minister Mark Carney convened the Incident Response Group with ministers and senior officials to discuss the wildfire situation across Canada. The group was briefed on increased wildfire activity, with hundreds of active fires burning in every province and territory. Extreme heat waves and record-breaking dry conditions are resulting in one of the most intense wildfire seasons in the nation's history.

The group discussed the federal government's ongoing coordination with the Government of Ontario and First Nations leadership, including support provided in response to Ontario's Request for Federal Assistance for air evacuation operations. The Prime Minister outlined the federal government's actions to provide urgent assistance wherever required. Nearly 300 water bombers, helicopters, and reconnaissance and evacuation aircraft are actively supporting wildfire response operations.

The Canadian Armed Forces (CAF) deployed four CC-130 Hercules aircraft to support 13 evacuation flights from Eabametoong First Nation (Fort Hope). Wildfire firefighters are using advanced data, predictive analytics, artificial intelligence, drones, high-resolution radar imagery, and advanced thermal imaging to support real-time detection and mitigation efforts.

The Prime Minister reiterated the federal government's commitment to deploy every resource needed to keep Canadians safe. He underscored efforts across all levels of government to strengthen Canada's forest management and wildfire response capacity. The group expressed gratitude for the more than 5,300 firefighting personnel deployed across the country this summer, as well as other first responders, CAF personnel, Indigenous leadership, and local officials.

The Prime Minister recognized the generosity of Canadians who have welcomed evacuees, volunteered their time, and supported relief efforts through donations and local initiatives. He acknowledged the Government of Mexico for its support, including its commitment to provide up to 200 firefighters in the coming weeks. The Prime Minister urged those in affected areas to follow instructions from local authorities and asked that non-essential travel to impacted regions be avoided to keep accommodations available for evacuees and responders.

Key Deployments and Support

The Prime Minister directed ministers and senior officials to continue working closely with provincial, territorial, and Indigenous partners to support affected communities.

Canadians are displaying modest signs of financial improvement, yet affordability pressures continue to dictate their spending, borrowing, and financial protection strategies, according to TransUnion's Q2 2026 Canada Consumer Pulse Study. While 45% of surveyed Canadians express optimism about their household finances over the next 12 months, 86% rank inflation among their top three household financial concerns. The study reveals that 50% of respondents feel their income is not keeping pace with inflation, resulting in persistent cost-of-living squeeze despite gradual economic improvements.

The survey responses indicate a gradual enhancement in financial health, driven by stronger household incomes and growing confidence. One-quarter (25%) of consumers reported an increase in household income over the past three months, and 24% stated their finances are better than expected so far this year, marking the highest level recorded in the past year. However, these gains have not translated into broad financial relief, as households continue to absorb higher everyday expenses.

"Many Canadians are beginning to see improvements in their financial outlook and have adapted to sustained periods of economic uncertainty. They're continuing to make decisions through an affordability lens," said Matt Fabian, senior director of financial services research and consulting at TransUnion Canada. "While improving incomes and easing economic conditions are helping households regain their footing, affordability continues to shape everyday financial decisions. We're seeing Canadians become more intentional with how they spend, borrow and manage their financial health as they adapt to a higher-cost environment."

Affordability Shapes Spending Decisions

Despite the beginning of financial improvement, Canadians continue to make deliberate trade-offs in budget management. Consumers remain focused on essential expenses while being selective about discretionary purchases. The study highlights that 51% of those surveyed cut back on discretionary spending, including dining out, travel, and entertainment. Additionally, 26% cancelled subscriptions or memberships, and 18% chose to pay down debt obligations faster. Conversely, 11% increased discretionary spending, up three percentage points year over year, signaling early signs that some households are regaining financial flexibility.

Cautious Approach to Borrowing

Although affordability pressures persist, Canadians have not significantly retreated from the credit market. One-quarter (25%) of surveyed Canadians plan to apply for new credit or refinance existing credit over the next year, a figure unchanged from a year ago. Younger Canadians lead the demand for new credit, with 48% of Gen Z consumers and 37% of Millennials planning to apply for new credit or refinance. Credit cards remain the preferred borrowing product, with 49% of prospective borrowers planning to apply for a new credit card.

However, caution is evident. About 21% of Canadians considered applying for new credit but ultimately decided against it. Among this group, 29% determined they did not need additional credit, while 26% cited the cost of credit as the primary reason. Furthermore, 22% believed they would not qualify due to their credit history, and 20% cited income and employment status.

Proactive Financial Management Amid Fraud Threats

As fraud attempts and data breaches rise, Canadians are taking a more active role in monitoring their financial health. The study found that 44% of Canadians were targeted by fraud in the past three months without becoming victims, and 20% were notified they were affected by a data breach. Consequently, 40% of consumers now check their credit report at least monthly, an increase of three percentage points year over year. Despite this growing awareness, 33% of consumers reported taking no action to address cybersecurity concerns, with 51% of those unsure what steps to take.