As Canada enters 2026, economic confidence remains in negative territory, according to the latest Leger Economic Confidence Report. Consumers are still feeling anxious over high prices and economic uncertainty from the ongoing trade friction with the U.S. Any upward momentum seen last fall appears to have been short lived.
The study shows that perceptions of the Canadian economy have slipped back to levels last seen in the summer of 2025, with few Canadians expecting conditions to improve in the coming months. At the same time, confidence in personal household finances remains comparatively steadier, reinforcing a familiar divide between how Canadians feel about their own situation versus the country as a whole.
Canadians continue to rate the economy poorly
Economic anxiety remains widespread, with most Canadians closely monitoring issues affecting the country’s financial outlook. A clear majority of Canadians believe the Canadian economy is not doing well, with 62% describing current economic conditions as poor or very poor, compared to 31% who perceive the economy to be good or very good.
Looking ahead, only a small minority (10%) expect the economy to improve over the next six months, while 43% expect it to decline and 45% expect it to remain the same.
Personal finances remain steadier than national confidence
Despite pessimism about the economy, Canadians continue to view their personal finances more positively.
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- 57% describe their household finances as good or very good;
- 38% describe their household finances as poor or very poor.
Expectations for household finances over the next six months are comparatively stable over several waves of the study:
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- 16% expect their household finances to improve;
- 23% expect them to decline;
- 61% expect them to remain the same.
Discretionary spending plans hit a new low
Canadians planning to reduce discretionary spending outnumber those planning to increase it by the largest margin in over two years:
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- 20% expect their discretionary spending to increase over the next six months;
- 36% expect it to decrease.
Compared with results from September to 2023 through to September 2025, fewer Canadians expect to spend more, while more anticipate spending less. Even households that feel financially stable are increasingly choosing to pull back.
Holiday spending still exceeds budgets
Despite cautious expectations, Canadians were more likely to exceed their holiday budgets than underspend.
More Canadians report spending more than planned (31%) during the holidays than spending less than planned (19%), while 39% report spending about what they intended. However, the share exceeding their budget is lower than last year (34%), pointing to greater caution and reduced willingness to overspend. This pattern suggests Canadians are attempting to manage expenses, even as cost pressures make budgeting difficult.
Avoidance of U.S. products remains widespread
Trade tensions are influencing consumer behaviour in tangible ways. Between nearly half and more than two-thirds of Canadians say they always or sometimes avoid buying U.S. products or services (between 48% and 69%, depending on the category).
Avoidance of U.S. products is highest for:
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- Food products other than produce (69%);
- Produce (68%);
- Alcohol (66%).
Digital subscription services are the hardest to avoid, reflecting limited non-U.S. options. Looking ahead, between 29% and 39% (depending on the category) of Canadians expect to be less likely to buy U.S. products in the next six months, suggesting this behaviour is not merely temporary. Regional differences are modest, with Canadians broadly aligned across the country.
Holiday spending still exceeds budgets
Despite cautious expectations, Canadians were more likely to exceed their holiday budgets than underspend.
More Canadians report spending more than planned (31%) during the holidays than spending less than planned (19%), while 39% report spending about what they intended. However, the share exceeding their budget is lower than last year (34%), pointing to greater caution and reduced willingness to overspend. This pattern suggests Canadians are attempting to manage expenses, even as cost pressures make budgeting difficult.
Looking for regional insights?
Detailed regional reports are also available, providing a closer look at economic confidence and spending expectations across provinces.
Methodology
This online survey was conducted among 2,622 Canadians aged 18 or older, between January 9 and 12, 2026. Respondents were recruited through LEO’s online panel. Results were weighted by age, gender, region, language, education, and household composition.
A margin of error cannot be associated with a non-probability sample. For comparison, a probability sample of this size would have a margin of error of ±1.9 percentage points, 19 times out of 20.
