Half think the worst is yet to come

Despite recovering 12 of the 15 points it lost last quarter, the MNP Consumer Debt Index remains more than 10 points below the historical average. The improvement reflects improved optimism, but households are far from optimistic. A scant 15 percent of Canadians believe the worst of the economic pain is in the rear-view mirror — half think the worst is yet to come.

Highlights from this quarter’s survey include:

  • Three in 10 Canadians say they don’t earn enough to cover their bills and debt repayments.
  • Three in five Canadians (57%, -2pts) will be in financial trouble if interest rates climb much more.
  • Four in five Canadians (83%, -4pts) plan to curb their spending.

The Bank of Canada has signaled it plans to hold interest rates steady as the successive hikes throughout 2022 continue to slow inflation as intended. However, concerns about an economic downturn and what that will mean for consumers remains the great unknown in the months ahead.

Read the full report here