Canadian consumers kept spending in the second quarter of 2023, continuing a trend of resilience in the face of higher interest rates and affordability challenges. But will this summer finally mark a turning point?

The Local Spending Tracker provides timely monitoring of spending patterns across Canada. It features high-frequency payments data allowing us to stay on top of the latest spending trends in Canada, BC and our region. Read below for analysis and the full report,  brought to you by the Langley Chamber and the Canadian Chamber of Commerce.

Nationally, after slow spending in late winter, consumer spending was brisk from April through mid-June, with May seeing the fastest pace of spending growth in 12 months.  However, with the most recent Bank of Canada interest rate increase, you can see a noticeable change in spending which ticked downward following the announcement.  Following another 0.25% increase in July, the next quarter's data will provide more insights on how this is impacting consumer spending. 

Regionally, consumer spending stayed positive on a year-over-year basis across all regions of the country in June, except Newfoundland and Labrador, but spending is starting to soften in BC.  Our growth has been below the national average, and when adjusted for inflation, consumer spending in BC is down 2.2%.   Given our high debt loads and significant mortgage and housing costs, any national reduction in spending due to interest rate hikes would likely be exacerbated here. 

Read the full report, brought to you by the Langley Chamber and the Canadian Chamber  >