Tariffs and Trade Tensions Continue To Weight on Consumers, says Bank of Canada

10:53 AM EDT, 10/20/2025 (MT Newswires) -- Bank of Canada Monday released results of the Canadian Survey of Consumer Expectations for the third quarter of 2025.

In an overview, the BoC said tariffs and trade tensions continue to affect consumers' spending plans and perceptions about their financial health. It noted many survey respondents expressed a desire to prioritize spending on Canadian goods and vacations in Canada.

Among other highlights, consumers saw a further deterioration in the labour market in the third quarter, driven in part by a "sharp" drop in job-finding prospects for public sector workers. Also, consumers continue to think tariffs will generate inflationary pressures. Expectations for short-term inflation remain above their pre-pandemic averages, and expectations for longer-term inflation have picked up again. A large share of survey respondents cited tariffs as the most important factor affecting the BoC's ability to control inflation.

Overall, the CSCE indicator, a measure that summarizes Canadian consumers' opinions about their spending plans, the labour market and their personal finances, rose "modestly" in the third quarter from its most recent low. Slight improvements in financial health and household spending intentions contributed to this rise, while perceived labour market conditions remained negative, it said.

The Canadian Survey of Consumer Expectations was conducted through an online panel from July 31 to August 21, 2025. The survey took place before the Canadian government announced it would remove some counter-tariffs. Follow-up phone interviews took place from August 22 to 28, 2025.

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