Canada's Consumer Spending Set to Perk Up in 2027: CIBC

CIBC World Markets Inc. economists predict that Canadian consumer spending will pick up in 2027, driven by easing household cost pressures and bolstered incomes.

The report cites a number of factors contributing to this trend, including the potential for reduced gas prices, lower mortgage payments, and stabilizing house prices.

According to the economists, the worst may be over for gas prices, with inflation expected to ease from here, resulting in a marginal positive impact on real disposable incomes in 2027.

The report also notes that the surge in mortgage refinancings at higher rates will start to ease by the second half of 2027, as shown by recent research from the Bank of Canada.