Conference Board of Canada – Index of consumer spending
In August 2025, the Index of Consumer Spending fell to 119.8—0.6 points lower compared to July (April 2022 = 100).
The Index of Consumer Spending is powered by exclusive consumer transaction data provided by Moneris Data Services. Moneris is Canada’s number one payment processor with over 3.5 billion transactions spanning more than 325,000 merchant locations. Our index tracks incremental changes in net transaction volume month-over-month from a set starting point (April 2022 = 100), enabling us to gauge economic activity levels across the country and provide insights into how the Canadian economy is performing coast to coast.
This month, regional ICS scores increased in five provinces/territories but declined in eight. Gains were outweighed by broader declines, as discretionary spending eased and tourism and travel activity returned to more typical levels after July’s surge.
August’s regional ICS scores edged higher in Ontario, Manitoba, Alberta, New Brunswick, and Nunavut. Meanwhile, British Columbia, Prince Edward Island, Nova Scotia, Newfoundland and Labrador, Saskatchewan, Yukon, and the Northwest Territories all saw their ICS scores shrink. Quebec’s ICS score remained relatively flat.
Consumer spending in August includes much of the back-to-school shopping rush and typically provides upward force on the month’s ICS. However, a retreat from the peak of July’s exceptionally strong travel and tourism season counteracted the boost from back-to-school spending. Back-to-school categories that rose this month include cellular services, which increased by about 1.5 per cent, and clothing and footwear, which increased by roughly 0.3 per cent.
Tourism and related components moved in different directions. Hotel prices increased by about 2.9 per cent on a monthly basis while travel-tour activity eased—a combination consistent with fewer trips and/or shorter stays even as accommodation costs remained elevated.
Grocery prices climbed this month, driven by higher meat costs—particularly beef, which rose by 12.7 per cent year-over-year—while fresh fruit prices ticked down slightly.
Overall, monthly prices rose modestly as headline consumer prices increased by 0.2 per cent month-to-month. Gasoline increased by about 1.4 per cent in August, which added some nominal support but not enough to prevent an overall decline in total spending.
A weaker labour market was another drag on this month’s ICS score. Employment fell by about 66,000 jobs and the national unemployment rate rose to 7.1 per cent. The pullback in the labour market likely led some households to curb discretionary purchases and prioritize necessities.
Consumer confidence remains weak and fell slightly from July to August. Consumers’ outlooks regarding job prospects were especially subdued in August, with less than 10.0 per cent of consumers surveyed for our Index of Consumer Confidence indicating they expect opportunities to improve over the next six months. The outlook that now is the right time for a major purchase was also weak, with nearly two thirds of consumers indicating they believe it is a bad time.
Mortgage renewals continued into August. Households who previously held fixed-rate mortgages at historically low rates will see significantly higher monthly mortgage costs once they renew. The higher costs will chip away at disposable income, which could have been spent on discretionary goods and services, thereby applying downward pressure on the ICS.