More than three-quarters (76%) of Canadian consumers say they plan to spend less money than last year on the year-end holidays as the country’s economy stagnates.
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A total of 61% of Canadians surveyed by Deloitte said they plan to spend less than $500 on the holidays this year, including gifts and food. The news is a potential blow to retailers such as Amazon (AMZN), Walmart (WMT), and Costco Wholesale (COST), especially if American consumers also spend less at the end of this year.
The situation is a reversal from 2024, when Canadians spent an average of $1,400 during the year-end holidays that include Christmas and Hanukkah. Spending among consumers in Canada last December was 10% higher than in 2023.
Glum Mood
The latest survey from Deloitte shows that Canadians are in a glum mood heading into the final quarter of the year. Consumers said they continue to be worried about a potential recession, as well as inflation and increasing their debt load. About 15% of Canadians said they’re concerned about reduced income and unstable employment.
The latest survey arrives with Canada’s economy having contracted an annualized 1.6% in this year’s second quarter. More recent data showed that retail sales in Canada during July declined 0.8% as consumers tighten their purse strings. On Sept. 17, the Bank of Canada lowered interest rates by 25 basis points to help counteract evidence of a weakening economy.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 46 Wall Street analysts. That rating is based on 45 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $264.51 implies 15.29% upside from current levels.
