Canadian Consumer Spending Starts 2026 on Soft Note

0:00It's March 26. You're listening to Canada News today. AI-powered local news. Canadian consumer spending kicked off 2026 on a softer note, according to fresh TD spend data. After a strong finish to 2025, Outlay's dipped in storm hit January before bouncing back in February. Real spending growth is now tracking at 1.2% annualize for the first quarter, down from 1.7% in the prior. Quarter. Good spending has been the wildcard here, with necessities like groceries and general merchandise driving most of the action. Those essentials now make up about 70% of goods growth, up sharply from last year, while housing-related purchases have dropped for two months straight. Services have stayed steady, picking up the slack with three months of gains. Travel and recreation stand out as the strongest areas, mostly fueled by higher income households, keeping things afloat amid the slowdown. All pressures are adding to the mix, like higher gas prices from Middle East tensions,

1:00and ongoing food inflation outpacing the overall rate. Weather disruptions also play to roll, freezing activity in some spots while shifting dollars elsewhere. Overall, consumers look resilient yet worn down, leaning on basics, and select luxuries to navigate these bumps, with no easy breaks in sight.