Consumer spending up, but income not keeping pace for many: BCG report

TORONTO — A new report says Canadian consumer spending has grown across income groups, but only those in the top 20 per cent of earners saw their income growth fully match and support their higher spending.

TORONTO — A new report says Canadian consumer spending has grown across income groups, but only those in the top 20 per cent of earners saw their income growth fully match and support their higher spending. The Boston Consulting Group report looked at household spending and income growth between 2021 and 2025. It says that outside of the top 20 per cent, households covered their increased spending by relying more on savings, rising portfolio values and borrowing.

The report added spending on services drove most of the growth, including financial services tied to borrowing and asset-linked fees, while real spending on essentials was flat and purchases of cars, furniture, and appliances fell. The report says there's no longer a "single average consumer" for businesses to target, which means leaders need to build growth plans around a more uneven, financially constrained consumer. The report noted the middle 60 per cent are still spending, but their savings and balance sheets are moving more in the direction of the bottom 20 per cent than the top 20 per cent.

This report by The Canadian Press was first published July 14, 2026. The Canadian Press