ACTV - Struggling Consumers Are A Tough Slog

2024-07-15 13:20:00 ET

Summary

• Consumer spending drives just under 60% of Canadian GDP growth, and consumer spending fell across all categories in June–discretionary and essential.
• Fewer Canadians have renovated their homes amid a sluggish housing sector, while food services spending posted weak growth on a three-month moving average.
• The average annual interest payments per Canadian household have risen 66%+ in the past 2 years, by far the sharpest increase in more than 24 years (shown below since 2000).

Consumer spending drives just under 60% of Canadian GDP growth, and consumer spending fell across all categories in June–discretionary and essential (shown below courtesy of RBC ). Warm weather and declining interest rates did not entice spending as hoped. Overall, second-quarter retail sales were negative....

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