"Those surveyed by the central bank for its quarterly Survey of Consumer Expectations perceived a higher likelihood of missing debt payments and a greater chance of losing their jobs. They also expect inflation to stay elevated in the near-term, citing tariffs as a primary driver. Those worries weighed on their spending plans, with respondents pointing to high prices, economic uncertainty and higher housing costs as barriers to spending."
"The Canadian economy has proven more stable than the worst case scenario hypothesized by some analysts and economists last year. While job growth slowed last month and the unemployment rate ticked back up, labour data had largely bounced back in the fall; the country avoided a technical recession in November; and inflation has stayed within the Bank of Canada's target window."
Consumers remain anxious about high prices and economic uncertainty from the U.S. trade conflict and perceive higher risks of missing debt payments and losing jobs. Near-term inflation expectations are elevated, with tariffs cited as a primary driver. Those concerns have reduced spending plans, with high prices, economic uncertainty and rising housing costs named as barriers. Compared with the previous quarter, more respondents said their financial situation deteriorated while some reported better chances of finding or voluntarily leaving a job. Long-term inflation expectations eased below pre-pandemic levels, but overall consumer expectations declined in the fourth quarter and remain below pre-pandemic and pre-trade-conflict levels.
Read at www.cbc.ca
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