Sisi Chan

Consumers may not be feeling as ‘rosy’ as the economy appears to be

The article begins by suggesting that the Canadian economy seems to be in a good state with an increased GDP, but individual consumers are planning to decrease spending, particularly during the holiday season. Economic indicators might appear positive, but the reality for consumers is far from rosy. Richard Forbes of the Conference Board of Canada explains the low consumer confidence.

Canada’s GDP rising more than expected in September managed to help the nation avoid a technical recession. Yet, the potential impact of the trade war and tariff uncertainty are still real concerns.

A slight drop in unemployment rate in October was noted, but the high youth unemployment rate compared to the national average remains unaddressed.

There’s a reduction in household spending from July to September. A Bank of Montreal survey shows 41% of respondents plan to decrease holiday season expenditures.

Experts believe the positive reports on the economy do not necessarily mirror individual financial situations. Rubina Ahmed-Haq, a personal finance expert, reinforces this viewpoint.

Consumer Price Index for October shows an increase in prices, particularly food, compared to the same period last year.

Richard Forbes encourages looking beyond the headline numbers to grasp the real state of economy, and warns about the possibility of a recessionary environment.

The Bank of Canada acknowledges constrained consumer spending, attributing this to uncertainty in the job market.

Ahmed-Haq emphasizes individual economic variations and suggests boosting production could improve affordability in Canada according to the Bank of Canada’s report.