Have you cut back on purchases as a result of tariffs?

Photo: THE CANADIAN PRESS/Justin Tang

A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a $20 bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa..

A survey from insolvency firm MNP Ltd. suggests Canadians' outlook for their personal finances has brightened even as they've taken steps to cut their expenses amid economic turmoil.

The latest MNP Consumer Debt Index conducted by Ipsos rose nine points to 88 this quarter over the previous one.

About three quarters of those surveyed have cut back on their spending or delayed major purchases due to uncertainty around U.S. tariffs and their potential impact on the global economy, said the report released Monday.

“The improvement we are seeing in Canadians’ feelings toward their personal finances follows two Bank of Canada interest rate cuts this year," said MNP president Grant Bazian.

"And while uncertainty remains around U.S. tariffs, their on-again, off-again nature may be providing Canadians with some optimism for the future — especially since these tariffs have yet to make a full impact on household budgets."

Sixty per cent of respondents said they're concerned about the possibility of interest rates increasing.

But the proportion of those who feel better equipped to handle a one-percentage-point increase has risen by four points to 24 per cent, while those who feel less prepared has decreased by six points to 21 per cent.

“Lower interest rates, along with the budget adjustments Canadians have already made, seem to be providing some breathing room," said Bazian.

More than half of respondents reported that they worry about falling into financial trouble if rates rise, with 38 per cent saying an increase could push them toward bankruptcy.

The MNP survey suggests 44 per cent of Canadians are bracing for an increase in housing costs within the next year — a much more prominent sentiment among renters than homeowners.

A little over half of those earning under $40,000 a year are expecting an increase in housing costs versus a third of those earning $100,000 or more a year.

"More than four million mortgages — roughly 60 per cent of all outstanding mortgages in Canada — are set to renew by the end of 2026 at potentially higher rates," said Bazian.

"This is just one example of the rising expenses, compounded by ongoing economic uncertainty, that those teetering on the edge can’t afford."

Ipsos compiled the data from interviews with 2,000 Canadians between March 11 and 14. The polling industry's professional body, the Canadian Research Insights Council, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.

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