Real consumer spending in Canada expected to moderate over the course of 2015: TD Economics

Quotes from TD Economics:

- The impact from the plunge in oil prices over the second half of 2014 is clearly on display in today's retail sales report. Oil-producing regions are recording signs of weakness. That said, we continue to expect consumer spending to make a positive contribution to real GDP growth in Canada in Q4.

- Looking ahead, real consumer spending is expected to moderate over the course of 2015. The recent rate cut by the Bank of Canada is expected to be followed by another 25 basis point cut in March which should help prop up household expenditures. Lower gasoline prices are also estimated to save the average Canadian household around $875 at the pump this year. 

- On the other side of the coin, lower oil prices will also weigh on incomes and act as a headwind to consumer spending. Canadian households are also carrying high levels of debt, which will keep consumer spending in check in 2015.