Consumer spending is expected to cool in the third quarter — something the Bank of Canada wants — as interest rate hikes hit Canadians. Read on.
Canadians prioritized spending on discretionary services over goods in the second quarter, research from RBC Economics found.
“So I think that eventually that will spill over into the services sector. We just haven’t seen it yet.” The central bank is looking for slower growth to help it reach its target of two per cent inflation, said Tapp, and that includes slower spending growth. This helps explain why consumer spending has remained strong even as Canadians cut back on spending to deal with higher costs, said Tapp.
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