Shoppers at a west-end Toronto Sobeys grocery store, Sunday, June 26, 2023. The Canadian Chamber of Commerce says while consumer spending remained strong in the second quarter, it turned a corner after the Bank of Canada announced another interest rate hike in June. THE CANADIAN PRESS/Graeme Roy
OTTAWA – The Canadian Chamber of Commerce says while consumer spending remained strong in the second quarter, it turned a corner after the Bank of Canada ended its pause on interest rate hikes.
Chamber chief economist Stephen Tapp says consumer spending will likely slow noticeably in the second half of the year as people cut back on discretionary purchases.
He says population growth has been supporting strong spending.
The Chamber’s business data lab found that consumer spending saw a resurgence in April and May following a post-holiday slump.
However, it says that after the Bank of Canada hiked its key policy rate to 4.75 per cent in June, spending started to dip.
The central bank hiked its trendsetting rate again last week to five per cent.
This report by The Canadian Press was first published July 20, 2023.
