Indicators
Canada Household Spending Per Person Falls at Recession Pace
- Real household spending per capita dropped 1.3% y/y in 2Q
- Bolsters case for Bank of Canada to cut rates next week
A shopper carries in Vancouver.
Photographer: Isabella Falsetti/BloombergThis article is for subscribers only.
Household spending per person in Canada is falling at a pace only previously seen during recessions. After adjusting for inflation, the measure fell 1.3% in the second quarter from the year before.
Since the 1960s, spending has declined faster just four times, bottoming out in 1982, 1991, 2009 and 2020. Those years were all marked by deep economic downturns.