Regarding household finances over the long term, 29% of Canadians voiced pessimism, an increase of 5% from the previous year.
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“We are seeing wavering confidence among Canadians due to continued concerns around cost-of-living price increases,” said Matt Fabian, director of financial services research and consulting at TransUnion.
Fabian added that inflation hikes are surpassing income gains, according to more than half of Canadians polled. The desire for Canadians to take out new loans is being stifled by rising interest rates.
Even though most Canadians anticipate an increase or a flat level of household income, they are handling their finances in a practical way. Many people are cutting down on spending and increasing their savings, possibly to prepare for price increases and for the effects of a prospective recession.
