New Report from TransUnion Reveals Rising Prices Stifle Canadians’ Personal Finance Optimism – Yahoo Finance

TransUnion

More than half of Canadians (56%) surveyed report that inflation and interest rate concerns impact purchasing behaviour despite current positivity

Q1 2022 TransUnion’s Consumer Pulse study key findings:

  • 56% of Canadians reported being ‘very concerned’ about the inflation rate and associated impacts

  • 60% indicated their current household finances are as planned or better in Q1 2022

  • 54% reported not feeling confident about household finance outlook over the next 12 months

  • 46% indicated they are cutting back on discretionary spending

  • One in four (25%) reported that they do not expect to be able to pay at least one of their current bills and/ or loans in full

  • 53% indicated that rising interest rates impact their approach to applying for credit

TORONTO, April 19, 2022 (GLOBE NEWSWIRE) — TransUnion’s most recent Consumer Pulse study* shows that while the majority of Canadians feel positive about their current personal finances as the economy continues to reopen, concerns about longer-term macro-economic pressures are casting a shadow over their optimism.

“Canadian households have been building up their savings throughout the pandemic,” said Matt Fabian, director of financial services research and consulting at TransUnion. “As the impact of the pandemic continues to subside, we expect that consumers will distribute these savings toward deleveraging credit, wealth management and increased household spending. But for now, concern over inflation and interest rates is fueling a sense of concern and hesitation.”

Canadians feel positive about their current financial situation – but are concerned about the future: The latest Consumer Pulse Survey showed that 60% of Canadians felt like their finances were the same or better than planned in Q1 2022. This may be partially due to the government subsidies supporting households throughout the pandemic, as well as lender debt relief. Overall, 19% reported that their household income increased since the last quarter, versus 54% who said it stayed the same, and 28% who said it decreased. However, looking ahead more than half (54%) indicated they do not feel as optimistic about their household finances over the next 12 months.

Future outlook tainted by inflation and cost increase pressures: When it comes to the longer-term perspective over the next 12 months, the majority of Canadians’ outlook is tainted as concerns about inflation and affordability grow. This is despite the fact that 52% of Canadians expected their household income to stay the same, and 35% expected it to increase over the next year. More than half (56%) of Canadians said they …….

Source: https://finance.yahoo.com/news/report-transunion-reveals-rising-prices-100000901.html

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