Canadian Outlook Economic Forecast: Household Consumption—August 2020

The Conference Board of Canada, 13 pages, August 13, 2020
Issue briefing
(You must be signed in and entitled to rate this report)

This quarterly economic forecast presents the medium-term outlook for the Canadian economy. This release focuses on household consumption. For an overview of all major components of the economy, download the Canadian Outlook Summary.

Document Highlights

  • Household spending plummeted an estimated 51.3 per cent in the second quarter of 2020, following a 9.0 per cent drop in the first quarter.
  • Weak consumer confidence amid uncertainty over employment and household finances will weigh on consumer spending on durables in the near term.
  • COVID-19 will take a toll on tourism- and recreation-related services spending, further hurting household spending.
  • High household debt levels and deteriorating labour market conditions will limit households’ ability to spend.
  • Household spending habits shifted toward essential goods during the COVID-19 economic lockdown. Canadians have been holding off on their discretionary spending while increasing their budget for essential goods.
  • In 2021, pent-up household demand, combined with the low-interest-rate environment, will support an 8.6 per cent bounce-back in household spending.

Table of Contents

  • Key findings
  • Household consumption snapshot
  • Households curb spending this year
  • Deteriorating financial conditions limit room for spending
  • Consumption outlook by categories

COVID-19: Get all the insights

To see if you are entitled to get this research for free, take a minute and create a free e-Library account. This will let us determine if someone else at your organization has already purchased access to this material.

Browse by...
Need Help?