Consumer spending moderating in wake of BoC hikes, says RBC

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At the same time, “Canadians are spending nearly 10% more on essential items than they were just one year ago,” even as “the surge in discretionary spending has dissipated,” Freestone added.

“To-date, (nominal) September spending is trending positive in a few categories, including gasoline consumption, motor vehicle sales, and grocery spending, reflective of higher prices for essential goods.”

Canadians spending less on non-essentials

Amid the current environment, most Canadians are significantly cutting down on their discretionary spending (54%), digital services (21%), and subscriptions or memberships (26%), according to a poll by TransUnion earlier this year.

More than one third (34%) of respondents also said that they are buttressing their resources for a possible recession, while 36% indicated a belief that a recession is already in progress.

“Macroeconomic pressures remain top-of-mind for many,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada.

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