Canadian Outlook Economic Forecast: Household Consumption—August 2020
The Conference Board of Canada, 13 pages,
August 13, 2020
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.
- 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