The Bank of Canada in Ottawa on Tuesday, Dec. 15, 2020. THE CANADIAN PRESS/Sean Kilpatrick

The Bank of Canada in Ottawa on Tuesday, Dec. 15, 2020. THE CANADIAN PRESS/Sean Kilpatrick

Households expect return to pre-pandemic spending within a year, Bank of Canada says

The central bank says the gap between spending and wage expectations has never been this wide

The Bank of Canada says Canadian household spending will eclipse earnings in the coming months as vaccinations increase and uncertainty from the pandemic recedes.

The central bank says the gap between spending and wage expectations has never been this wide in its quarterly survey of consumer expectations.

Officials at the bank suggest that gap is likely the result of households intending to spending some of the billions in savings built up during the pandemic either because they cancelled purchases, or had no place to spend the money.

As the survey says, respondents anticipated spending more than one-third of extra savings from the pandemic over the next two years, and over one-tenth to pay down debt.

The survey released this morning says consumers expect their spending patterns to return to normal in about one year, with post-vaccination increases on a wide range of goods, especially travel and social activities.

Overall, 75 per cent of respondents in the survey said they planned to get vaccinated, a further five per cent said they already had a first dose, and the remaining 20 per cent either were unsure or didn’t plan to get vaccinated.

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronavirus

Just Posted

Police tape crosses Auchinachie Road at Somenos Road as police investigate an incident Friday at 11:30 a.m. (Kevin Rothbauer/Citizen)
UPDATE: Gardener digs up explosives, neighbours, school evacuated

Students removed from school in an ‘abundance of caution’

The Greater Victoria School District continues to face backlash over its wording and approach to Indigenous learners in its 2021-2022 budget talks. (Black Press Media file photo)
School district’s approach to Indigenous learners leaves Victoria teachers ‘disgusted’

Backlash grows over ‘pattern of colonial thinking permeating the leadership’

Colin Dowler survived a grizzly bear attack July 29, 2019 on Mt. Dougie Dowler on the south coast of British Columbia and reports that his physical and mental rehabilitation is still ongoing. Photo courtesy Colin Dowler
‘Bad-ass dude that took on a grizzly bear’ doesn’t let 2019 attack bring him down

Campbell River’s Colin Dowler gets on with his life as his rehabilitation continues

Arrowsmith Search and Rescue manager Ken Neden, as he goes over the events of the Qualicum Falls river rescue on Dec. 12, 2020, for a United Kingdom television program “Unbelievable Moments Caught on Camera’. (Mandy Moraes photo)
UK TV show spreading news of daring Qualicum Falls river rescue across the world

Arrowsmith SAR trio share their accounts for ‘Unbelievable Moments Caught on Camera’

An elderly man having a medical emergency in Mount Douglas Park on May 13 was rescued by firefighters and paramedics with the help of ATVs. (Devon Bidal/News Staff)
Rescue team uses ATVs to get man in medical distress out of Saanich park and to hospital

Cedarhill Road closed as firefighters, paramedics rescue man in Mount Douglas Park

Prince Rupert was one of the first B.C. communities targeted for mass vaccination after a steep rise in infections. Grey area marks community-wide vaccine distribution. (B.C. Centre for Disease Control)
B.C. tracks big drop in COVID-19 infections after vaccination

Prince Rupert, Indigenous communities show improvement

Police are at Ecole Mount Prevost Elementary but the students have been evacuated. (Kevin Rothbauer/Citizen)
Gardner finds buried explosives, sparking evacuation of Cowichan school

Students removed from school in an ‘abundance of caution’

A COVID-19 patient receives oxygen outside a hospital in Jammu, India, Wednesday, May 12, 2021. (AP/Channi Anand)
B.C. donates $500K to Red Cross COVID-19 relief efforts in India

The money will provide oxygen cylinders and ambulances for patients in communities grappling with the virus

Superintendent Aaron Paradis, community services officer with the Surrey RCMP, during a media availability about a recent drug bust in Port Coquitlam. (Photo: Lauren Collins)
Police seize 13 million ‘potentially fatal doses’ of pure fentanyl at B.C. drug lab

The evidence was seized at large, illicit drug manufacturing site in Port Coquitlam

Left to right: Royal Bay students Payton Gust, Oskar Wood, Cheyenne Norman, Julia Morrison, Tanisha Spiller and Izzy Kroll made up the team who painted their high school’s crosswalk. (Royal Bay Secondary School photo)
Senior student leaves mark at Vancouver Island high school for LGBTQ+ students

Crosswalk at Colwood’s Royal Bay Secondary painted in support of marginalized community members

Pathfinders and Wild Wise Sooke built slim, black bat houses to be hung around Sooke. (Submitted/Wild Wise Sooke)
Vancouver Island teens build bat condos

Wild Wise Sooke says bats will sleep, hibernate and raise their young in the boxes

B.C. Public Safety Minister Mike Farnworth debates the province’s latest measure to control crime, March 10, 2021. The legislation allows police to impound vehicles used to transport weapons and further restricts sale of vehicle and body armour. (B.C. legislature video)
B.C. seeking ways to ‘name and shame’ gangsters, minister says

Mike Farnworth appeals to family members to talk to police

The Arts Council of Ladysmith and District is working with several Vancouver Island art councils on the Digitial Innovation Group to improve digital skills for Island artists. (Submitted photo)
Arts group promotes digital literacy for Island artists

The goal is to leverage digital skills to promote Vancouver Island as an ‘arts powerhouse’

Jonathan Prest had to climb way up to the top of a dead red cedar tree to rescue a terrified cat, but he made it up and down successfully. (Facebook photos)
Tree cutter rescues cat stuck 100 feet up a dead and dried-out cedar

Jonathan Prest put himself in extreme peril to get a terrified cat out of a dangerous situation

Most Read