Canadians say higher rates are crimping their personal spending

Nearly two-thirds of Canadians say higher borrowing costs are squeezing their pocketbooks, a result that’s at odds with a recent rebound in household consumption.

Some 64 per cent of Canadians say higher interest rates are having a negative or somewhat negative impact on their personal spending, according to a Nanos Research Group survey conducted for Bloomberg News. Another 28 per cent said there was no impact, while 6 per cent said the impact was positive.

The survey may raise questions about why a spending slowdown hasn’t yet shown up in the data. Recent gross domestic figures showed household consumption rebounded in the first quarter, rising at an annualized 5.7 per cent pace, the fastest since the beginning of last year. Statistics Canada will publish fresh retail sales numbers next Wednesday.