There are signs that Canadians are tightening the purse strings as the fight against inflation appears to be having some effect.
An examination of spending patterns on client credit and debit cards from TD Bank shows an increase in July but they attribute that to the federal government’s grocery rebate and think the best approach is to look at these numbers over a three-month period. And, on that, spending is flat at best nationally.
They’ve also identified a couple emerging trends. We are pulling back on discretionary spending such as entertainment and recreation. But we’re also trimming expenditures on things such as furniture.
Interestingly, they tie that to the housing market. People buying new homes tend to refresh their décor but housing sales are slowing and there is a growing tendency to ‘make do’ with the existing sofa or chairs as budget restraints pinch wallets.
Places where spending is going up include tailors as people brighten up their wardrobe to go with the ‘return to work’ trend following the end of the COVID pandemic.
