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, the Canadian Chamber of Commerce said.
Consumer spending will likely slow noticeably in the second half of the year as people cut back on discretionary purchases, said Chamber chief economist Stephen Tapp.
“It's true that the second quarter has been really good. Just like the first quarter was really good,” said Tapp. Tapp said population growth has been supporting strong spending - while spending tracked by the Chamber is up from last year, when adjusted for inflation and population growth, real spending growth per person has actually been negative since mid-March.
Consumer confidence decreased in June after several months of gradual increases, according to the Conference Board of Canada, with future job prospects trending negative.
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