RBC Bank reported that consumer spending fell 2.2 percent in August, while purchases of essential goods rose just 0.4 percent. That’s down from July, when purchases rose 1.1 percent.

Clothing, however, remained popular, but travel-related spending fell 0.1 percent over the past three months.

Economists believe that the drop in gas prices following the elimination of the carbon tax is a major factor in the decline in consumer spending.

The J.D. Power study also found that monthly credit card spending fell 17 percent over two years to about $1,336. Cash and debit card payments have also declined since 2023.

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