A recent survey by Nanos Research Group reveals that nearly two-thirds of Canadians are impacted by higher borrowing costs, despite a rebound in household consumption.

According to the survey

64% of Canadians feel negative or somewhat negative effects on their spending due to higher interest rates.

The survey results raise questions about the disconnect between consumer spending slowdown and recent data showing a 5.7% annualized growth in household consumption.

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The Bank of Canada

Unexpected rate increase to 4.75% may have contributed to Canadians' concerns after a series of previous rate hikes.

interest rates

Rising interest rates are causing consumers, especially younger age groups, to defer major purchases, says Nik Nanos, founder of Nanos Research Group.

The survey highlights that younger Canadians are disproportionately affected by rate hikes, with 76% of those aged 18 to 34 citing negative impacts from inflation.

inflation

The Nanos survey interviewed 1,096 Canadians online and by telephone between May 31 and June 3, with a margin of error of 3 percentage points.

Nanos survey

The survey findings indicate that Canadians, particularly younger age groups, are feeling the effects of higher rates on their spending habits, reflecting the ongoing impact of interest rate changes on the economy.