Limited spike in summer spending anticipated: CPA Canada survey

TORONTO, June 25, 2014 /CNW/ - A national survey conducted for the Chartered Professional Accountants of Canada (CPA Canada) suggests that spending by Canadians won't be heating up over the summer.

Just over one quarter of those surveyed (26 per cent) anticipate their spending will increase this summer when compared with other times of the year. However, half of the respondents (50 per cent) expect their spending to remain the same while 24 per cent are forecasting a drop.

It is no different whether the participants were asked about spending relating to food costs, travel/vacation, entertainment, clothing, heating/cooling, home maintenance, transportation or home renovation. "Remain the same" always emerges as the top response.

"It's steady as she goes with little wake when it comes to the summer spending plans of survey respondents," says Cairine Wilson, vice-president, Corporate Citizenship, CPA Canada. "With lingering economic uncertainty, it makes sense that many Canadians won't be looking to significantly alter their spending patterns over the summer."

In terms of spending projections for the summer of 2014, the largest increases (roughly four in 10 respondents) are for food costs, home maintenance and transportation.

Summer Vacations (2013 and 2014 comparison)

Focusing on vacations, almost one-third of respondents (30 per cent) say they will be spending more this summer when compared with a year ago. But again, the status quo emerges as the leading response with more than four in ten survey participants (43 per cent) planning to spend the same as the previous summer.

Twenty-six per cent of those surveyed are planning to spend less on vacations this summer. The top two reasons cited are that they cannot afford it and they went on vacation last year or go every other year.

For those who are taking a vacation this summer, a number of avenues are being used to pay for it. Survey participants were allowed to give more than one response with the majority (61 per cent) dipping into their general savings to help cover the costs. The next three payment avenues most often referenced are using money set aside for a vacation (44 per cent), using part of their tax refund (13 per cent) and borrowing money (11 per cent).

Wilson is encouraged to see so many people setting aside money or using tax refunds to help pay for their vacation. "Saving for a vacation and not having to fret about paying for it greatly reduces stress and allows for lots of relaxation," she adds.

Methodology

The 2014 CPA Canada Summer Spending Survey was conducted by Nielsen via telephone between May 29 and June 2, 2014 with a national random sample of 1,014 adult Canadians aged 18 years and over and is considered accurate to within ± 3.1 per cent, 19 times out of 20.  A survey summary report is available online at www.cpacanada.ca/summerspending2014.

About CPA Canada

CPA Canada is the national organization established to support unification of the Canadian accounting profession under the Chartered Professional Accountant (CPA) designation. It was created by the Canadian Institute of Chartered Accountants (CICA) and The Society of Management Accountants of Canada (CMA Canada) to provide services to all CPA, CA, CGA and CMA accounting bodies that have unified or are committed to unification. As part of the unification effort, CPA Canada and the Certified General Accountants Association of Canada (CGA-Canada) are working toward integrating their operations this year. Unification will enhance the influence, relevance and contribution of the Canadian accounting profession both at home and internationally. www.cpacanada.ca

SOURCE: CPA Canada