A lot of Canadians think a recession is in the cards this year, but they appear to be less worried about the impact on their finances than one might expect.
Close to seven in 10 people believe Canada is in a recession or about to enter one, yet 60 per cent think they’re secure enough financially to weather an economic downturn, according to a recent survey from the Canadian Imperial Bank of Commerce. Another 64 per cent think their money situation would hold up in the event of an unforeseen shock.
Still, 70 per cent admit economic uncertainty has made it more difficult to plan ahead, while fears over job losses plague 42 per cent of those employed.
After a year of navigating rising prices for food and goods along with increased costs brought on by higher interest rates, many also harbour fears their wallets will face even more pressure ahead. Inflation remains the top money concern for 61 per cent, CIBC said, while 28 per cent are fretting about additional rate hikes.
Those fears are leading some to resolve to get their finances in better shape in 2024. Clearing debt, increasing savings and paying bills on time are the top three financial goals of those surveyed.
“With household budgets under some pressure from higher costs, it’s not surprising that paying down debt is a top priority for Canadians in the new year,” Carissa Lucreziano, vice-president at CIBC Financial Planning and Advice, said in a release.
But despite starting the year dealing with a higher cost of living, 64 per cent of those surveyed said they are just as positive about their finances as they were at the start of 2023. What’s more, the damage from those elevated costs might not have been all that bad for many; only 26 per cent said they were forced to take on extra debt last year.
CIBC’s findings are mirrored in a separate survey from the non-profit Angus Reid Institute, which showed 54 per cent of Canadians of all income levels ended 2023 feeling satisfied with their financial lives. That was less true of lower-income earners, however. More than half of those making under $50,000 a year said they were dissatisfied with their money situation.
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The carmaker didn’t break out the figures in a statement issued Tuesday, instead grouping its debut pickup together with the Model S sedan and Model X sport utility vehicle. Overall deliveries beat analysts’ average estimate, with the Model Y SUV and Model 3 sedan accounting for 95 per cent of vehicles sold in the quarter. — Bloomberg
- The United States Federal Reserve will release meeting minutes for its latest interest rate decision at 2 p.m. ET.
- Today’s data: Auto sales; U.S. ISM manufacturing PMI, November job openings and labour turnover survey
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Today’s Posthaste was written by Victoria Wells, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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