Canadians less optimistic about finances amid worries about inflation, income: survey
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Canadians are feeling less optimistic about their finances, with respondents worried about inflation, income levels and a potential recession at the midpoint of the year.
A new survey says Canadians are feeling less optimistic about their finances, with respondents worried about inflation, income levels and a potential recession at the midpoint of the year.
TransUnion's Canada consumer pulse study for the second quarter of 2024 found 57 per cent of Canadian households said their incomes are not keeping up with the current inflation rate, while 38 per cent expect payments for bills and loans to increase over the next three months.
This has prompted shifts in saving patterns, with some respondents indicating they are saving more in their emergency fund, increasing usage of available credit or adjusting their retirement savings plans.
Forty-six per cent of Canadians say their household finances are worse than planned so far this year, up four percentage points from a year ago, according to the survey of 1,000 Canadian adult consumers conducted from May 1-10. That's despite almost four in five reporting their income either stayed the same or increased in the last three months.
"I would say it's deteriorated slightly from the last couple of quarters," said Matthew Fabian, director of financial services research and consulting at TransUnion.
"As the high cost of living and high interest rates have continued, it's kind of eroded some of their disposable income over time, and I think it's starting to wear on them."
Other findings of the survey include 58 per cent of respondents reporting they are not optimistic about the state of their household finances over the next 12 months, and nearly two-thirds indicating they feel Canada is currently in a recession or will enter one before the end of the year.