BMO Survey: Three-in-Five Canadians Adjust Holiday Spending Plans Amid Tariff Concerns

Executive Summary

• BMO’s Real Financial Progress Index shows 61% of Canadians are adjusting holiday spending plans due to tariff‑related cost concerns.
• Average planned holiday expenditure is $2,310 per person, with the largest categories being travel ($545) and food & groceries ($517).
• 41% of respondents intend to cut back on overall holiday spending, while 25% started shopping early to avoid potential price increases.

Key Details

• Survey Scope: Conducted by Ipsos (Sept 3 – Oct 11, 2025); sample of 2,500 Canadian adults aged 18+, weighted to reflect national demographics; ±2.4% confidence interval.
• Spending Adjustments:
• 61% changing holiday plans because of tariffs.
• 25% began shopping early to pre‑empt price hikes.
• 41% plan to cut back overall spending; 39% expect to spend the same amount but purchase fewer items.
• Planned Average Expenditure: $2,310 per person, broken down as:
• Travel (flights, tickets, accommodations): $545
• Food & groceries: $517
• Dining out: $184
• Entertainment: $178
• Electronics: $163
• Clothing: $160
• Alcohol: $119
• Charitable giving: $116
• Toys & games: $95
• Holiday decorations: $57
• Other holiday expenses: $175
• Category‑Specific Cutbacks: Highest planned reductions are on holiday decorations (46%), travel (43%), dining out (42%), toys/games (40%), alcohol (38%).
• Consumer Behaviors:
• 42% will shop sales/clearance; 38% will buy less expensive gifts; 31% will spread purchases over weeks/months.
• 46% say holiday sales/discounters cause them to spend more than intended.
• 50% experience financial stress thinking about holiday spending; 35% feel pressure to keep up with others’ spending.
• Financial Coping Strategies:
• 36% will sacrifice long‑term savings; 35% have taken extra work (Gen Z 55%, Millennials 46%).
• Average repayment horizon for holiday bills is >2 months; 9% are uncertain about repayment timing.
• Budgeting Actions: 68% are more diligent with budgeting this year, rising to 75% among those worried about inflation/recession.
• Quotes:
• Sal Guatieri (Senior Economist, BMO) – “In the wake of recent tariff increases… Canadian consumers are feeling a sense of trepidation heading into the holiday season.”
• Anthony (Tony) Tintinalli (Head, Specialized Sales, BMO) – “Canadians are showing resilience by budgeting earlier, shopping mindfully, and prioritizing what matters most.”

Notable Quotes

• “With concerns about the rising cost of living and economic uncertainty shaping holiday plans, Canadians are showing resilience by budgeting earlier, shopping mindfully, and prioritizing what matters most,” said Anthony (Tony) Tintinalli, Head, Specialized Sales, BMO.

Materiality Assessment: Non‑Material – Neutral (the release provides consumer sentiment data without direct impact on BMO’s financial results or operations).