Canadian Survey of Consumer Expectations

Results of the third-quarter 2026 survey show that consumers’ long-term inflation expectations rose to match elevated shorter-term expectations. Consumers continued to cite trade tensions and energy prices as key sources of inflation. Expectations at all horizons moved higher following the breakdown of trade talks between Canada and the United States. Before trade talks broke down, the Canadian Survey of Consumer Expectations (CSCE) indicator edged higher, reflecting improvements in consumers’ views of their financial health. Consumers cited gains in financial asset values and greater confidence in the labour market as reasons for these improved views of financial health. Workers’ perceptions of the labour market moved closer to their survey average. Perceptions improved among workers more exposed to trade with the United States but deteriorated among workers in sectors where artificial intelligence poses a higher risk of task replacement. At the same time, spending plans deteriorated from already weak levels as high prices and economic uncertainty continue to weigh on consumers.

Results of the second-quarter 2026 survey show that consumers’ near-term inflation expectations remain elevated amid ongoing trade tensions and rising concerns about oil and energy prices linked to the war in the Middle East. The CSCE indicator remains low as consumers still view the economic environment as challenging. High prices and economic uncertainty continue to weigh on household spending plans, particularly among households expecting the war to significantly raise inflation. At the same time, perceptions of the labour market improved modestly as fears of job loss eased, particularly in sectors highly sensitive to trade.

Results of the first-quarter 2026 survey, conducted before the war in the Middle East, show that concerns about high prices and economic uncertainty continue to weigh on consumers’ spending plans. Even so, consumers, particularly those working in trade-sensitive sectors, became less negative about spending than in the previous quarter, and the CSCE indicator rose slightly reflecting this improvement in spending plans. Concerns about job losses remain elevated and increased among workers in sectors where artificial intelligence poses a greater risk of task replacement. Results of a special survey conducted after the war in the Middle East began suggest that most households expect the conflict to weaken the Canadian economy and raise prices.

Results of the fourth-quarter 2025 survey show that concerns over high prices and economic uncertainty related to the trade conflict continue to have a negative impact on consumers. As a result, even though labour market conditions improved somewhat, the CSCE indicator declined slightly. Expectations for near-term inflation remain higher than they were before the pandemic, while those for long-term inflation eased below pre-pandemic levels.