Canada Consumer & Retail Q4 2018
A more cautious outlook for the Canadian consumer will emerge in 2018, as the strong growth momentum in thecountry's economy and consumer-facing sectors seen over 2017 is expected to fade. A tightening labour market, low inflation andwealth effects from a booming real estate market propelled consumer spending over the course of 2017, but we believe that thesepositive impacts have now played out. Rising interest rates coupled with high levels of household debt make the Canadianconsumer likely to pull back, leading to slower growth in consumer spending in 2018.
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