Based on heightened results, Canadian consumers appear to be more pessimistic than global consumers about their spending expectations in the near future. Here are the key points regarding Canadian consumer pessimism:
1. The PwC Canada survey found that Canadian consumers are notably more pessimistic than their global peers in expectations for spending over the next six months. Only 26% of Canadian respondents said they have become more optimistic about the economy over the last six months, compared to 36% globally.
2. However, there is optimism among Canadians for increased spending on activities like dining out and travel in the longer term post-pandemic period.
3. The Bank of Canada’s surveys showed that while businesses and consumers have become less pessimistic recently as they expect interest rate cuts, nearly two-thirds of Canadians are still cutting or postponing spending due to high inflation and interest rates.
4. A Pollara survey found that 52% of Canadians believe the economy will worsen in 2024, and 82% believe Canada is in a recession, reflecting widespread pessimism about the economic outlook and personal finances. (a)The Bank of Canada’s consumer survey indicated increased pessimism, with 55% of consumers expecting a recession in the next year, up from 50% in the previous quarter.
Multiple surveys highlight heightened pessimism among Canadian consumers compared to global peers, driven by economic concerns like high inflation, interest rates, and fears of recession, which is dampening their near-term spending expectations.
“Keep liabilities and expenses down so more money is available to continue pouring into the asset column. Soon the asset base will be so deep that you can afford to look at more speculative investments: investments that may have returns of 100 percent to infinity; $5,000 investments that are soon turned into $1 million or more; investments that the middle class calls “too risky.” The investment is not risky for the financially literate.” – ROBERT T. KIYOSAKI’S ‘RICH DAD POOR DAD’
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Reviewed By: Nana K. Acheampong | Founder Of En Route Investors
TAGS: ERI, En Route Investors, ERIOB2, Consumption, Optimism, Inflation, Finance, June, International, Canada, GTA, Greater Toronto Area, Vaughan, Ontario
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