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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

RCMP did not commit offense in arrest which seriously injured Lake Country man, finds IIO. (Phil McLachlan/Capital News/Stock)
Vernon police didn’t use excessive force in domestic takedown: Watchdog

‘One stepped on him and one had his knee in his neck,’ woman told IIO

A fifth wheel fire came dangerously close to a Lake Country home Wednesday afternoon. (Lake Country Fire Department photo)
RCMP, neighbours save Lake Country house from fire

Fifth wheel up in flames next to home

École Kelowna Senior Secondary School had COVID-19 exposures on May 5, according to Interior Health. (Contributed)
COVID-19 exposures confirmed at Kelowna high school

The Central Okanagan School District didn’t specify how many cases there were

(Pixabay photo)
Morning Start: Kentucky has more bourbon than people

Your morning start for Thursday, May 6, 2021

An aerial rendering of the new intersection at Vernon’s 39th Avenue, featuring a double roundabout. The city announced the completion of the north-south transportation corridor Wednesday, May 5, 2021. (Contributed)
New north-south transportation corridor completed in Vernon

Drivers, cyclists and pedestrians now have a new way to get across town

Protesters attempt to stop clear-cutting of old-growth trees in Fairy Creek near Port Renfrew. (Will O���Connell photo)
VIDEO: Workers, activists clash at site of Vancouver Island logging operation

Forest license holders asking for independent investigation into incident

Salmon Arm Silverbacks forward Sullivan Mack gets a boost into West Kelowna goalie Johnny Derrick from Warriors forward Tyson Jugnauth during West Kelowna’s 5-4 B.C. Hockey League pod play win Wednesday, May 5, at Vernon’s Kal Tire Place. (Tami Quan Photography)
West Kelowna Warriors hold on to edge Silverbacks

Warriors up three with five minutes to go, give up two late goals but end up with 5-4 BCHL win over Salmon Arm

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Members of Vancouver Symphony Orchestra. (File photo)
B.C.-wide #DayOfMusic to feature 100-plus free virtual concerts May 15

‘Our colleagues across the province have figured out new ways to perform and connect,’ VSO boss says

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Two passengers were recently fined thousands of dollars after they faked their pre-flight COVID-19 test results. (Paul Clarke/Black Press)
2 passengers in Canada fined thousands for faking pre-flight COVID-19 tests

The government issued a warning Thursday to others thinking of doing the same – do it and you’ll be ordered to pay

(File)
With revenge porn on the rise in 2021, B.C. seeks feedback for new legislation

New legislation could help victims take down images and receive compensation

(Kamloops This Week file photo)
Federal police unit takes over probe of B.C. regional district’s spending

Financial Integrity Sensitive Investigations Unit is now reviewing the case

Photo: Kathleen Saylors
Grand Forks votes down letter to support Penticton in homeless shelter battle

Grand Forks city coun. Neil Krog insisted Penticton’s issue with Victoria is about city bylaws, not homelessness

Most Read