Despite businesses reopening, more than two-thirds of Canadians (69%) are continuing to spend less on non-essential items such as gifts and restaurant meals, according to a study by the Angus Reid Institute.
The poll results found a significant downward trend in non-essential spending as Canadians continue to shun frivolous purchases in favour of groceries, gas and other essential items.
The online poll found that while the majority of Canadians’ personal finances appear to be improving, with 80% of Canadians now reporting their financial status as ‘good’ or ‘great’ compared with 73% in April, the recovery differs strongly across income levels.
A total of 65% of Canadians whose earnings are less than $50,000 said they are in good financial shape compared to 89% among those earning $100,000 or more, according to the study results. Canadians receiving employment insurance or the Canada Emergency Response Benefit (CERB) are even more fragile, with 30% saying they are in bad financial shape.
The study found that three-in-10 Canadians have lost work due to COVID-19 and that 38% of those who have lost their jobs described their personal finances as "bad or terrible," three times the amount of those still employed (13%).
Canadians across all income levels agree that now is not the time to make major purchases such as a vehicle or home. More than half (56%) of respondents said that the next year is a bad time for major expenditures, with this number rising to 65% among lower income brackets.
