Consumers Remain Positive About Financial Outlook

Canadian consumers continue to demonstrate resiliency and remain positive about their financial outlook as the economy reopens, says a TransUnion ‘Consumer Pulse’ study. It shows over half of Canadian consumers (54 per cent) say they feel some optimism about the future and only one-third indicate their household income is currently negatively impacted by the COVID-19 pandemic, compared to 63 per cent at the height of the pandemic in April 2020. While credit performance remains healthy in Canada, and despite consumers’ overall positive financial outlook, many are holding off on taking on additional credit. More than three-quarters (76 per cent) are not planning to apply for new or refinance existing credit in the next year. However, this is not consistent across generations, with both Gen Z and Millennial respondents demonstrating a higher demand for credit. Nearly half of Gen Z respondents (48 per cent) and 34 per cent of Millennial respondents plan to apply for new credit or refinance existing credit within the next year. Gen Z has also demonstrated more of a willingness to spend more than other generations, with 22 per cent reporting they have increased discretionary spending in the last three months, compared to 12 per cent of Millennials, 11 per cent of Gen Xers, and five per cent of Baby Boomers. Overall, 47 per cent of consumers say they have reduced discretionary spending in the last three months.