Image credit: Clay Banks, via Unsplash

New data reveals that Canadians are not retreating when it comes to spend, but exercising restraint and exhibiting considerable pessimism.

An Angus Reid survey of 1,000 people commissioned by commerce provider Moneris from March 24 to 31 reveals that 13% of respondents anticipate economic improvement in the six months ahead. Additionally, 43% of respondents said they expect to spend less on non-essential items during the next half year. The findings mark a heightened increase in economic concern and a seven‑point drop in optimism compared with June of last year.

Moneris transaction data from January through March of 2026 reveals total spending and average transaction size essentially flat for the first quarter year over year.

According to Moneris’s VP of business development and data services, Sean McCormick, Canadians have become more focused and selective when it comes to discretionary spending.

“Businesses can adjust to a more cautious, pragmatic consumer by focusing on meaningful customer experiences that prioritize value and quality and reduce friction as much as possible,” he says.

Canadians are prioritizing essentials and value, the report says, with grocery spending and mass merchandisers seeing an increase in total year-over-year spend (2.6% and 6.9%, respectively). At the same time, Moneris points out that apparel and household spending each experienced a decline of 2%, while department stores experienced a decline of 8%.

Spending on entertainment rose 11% in the first quarter, with the average transaction size increasing 17%, underscoring continued demand for experiences even as consumers remain cautious elsewhere. Airline spending also increased 11%, though with smaller average transaction sizes, pointing to potentially shorter or more cost-conscious trips, Moneris said.

Lastly, foreign visitor spending remained flat in general during the survey period, but purchasing priorities shifted. The results showed international visitors spent more on entertainment (plus-21%) and less on hotels (minus-9%), suggesting a shift in how tourists are experiencing Canada.