By Pepper Parr
July 14th, 2022
BURLINGTON, ON
Where is it going – and where will it end?
The newspaper and television news programs spit out data but what does it all mean to your household and the commercial sector in your community?
Angus Reid, a worldwide and world class opinion research organization put out regular reports based on their continuing polling of public opinion.
They report that people are not travelling as much as they used to – explain that when you read about the delays at Pearson International Airport.
If people are actually doing the StayCation thing – will that mean increased business for the hospitality sector in your community?
Here is what Angus Reid has to say.
Half of Canadians Cutting Back on Vacations this Year
In response to inflation and rising costs of living, two-thirds (67%) of Canadians are cutting back on planned major purchases, activities or even education this year. Vacations appear to be the primary casualty, with half (47%) of Canadians cutting back on trips they planned to take.
Most Canadians Believe Inflation, Economic Downturn Are Here to Stay
On a variety of metrics, Canadians’ perceptions of the economy have only grown more pessimistic over the past month. Four-in-five (80%) believe the country is heading towards or already in the midst of a recession, with nine-in-ten (88%) concerned about the current state of the economy. Looking ahead to a year from now, more than half (57%) expect the economy to be even worse, twice the proportion who said the same just three months ago. Finally, despite inflation already having reached three-decade highs, two-thirds (67%) anticipate that it will only get worse during the next 12 months.
Canadians are Making Adjustments
Canadians are continuing to find ways to save money in response to inflation, though the burden appears to fall primarily on low-income households. Canadians earning less than $50k annually are significantly more likely to have reduced their spending in nearly every product category since the start of the year, particularly on clothing (59%), charitable donations (57%) and general household items (54%). For certain essentials– notably gas and groceries – rising costs appear too steep for many households to keep up with, with a third of Canadians saying they have been forced to increase their spending in these areas since January.
