As certain household cost pressures ease and equity markets bolster incomes, discretionary consumer spending is set to pick up in 2027, according to economists at CIBC World Markets Inc. At the same time, the surge in mortgage refinancings at higher rates, which has weighed on spending, will start to ease in the year ahead, the economists said. Alongside the expected easing of certain cost pressures, there are also a couple of other trends that could boost discretionary spending, it suggested. For one, there’s potential for increased spending by older households, which have been more tight-fisted than other groups lately when it comes to discretionary spending, on categories such as food, recreation and culture. “However, looking ahead to 2027, the trend does appear to be in favour of less strain on household incomes, leaving a little more room for discretionary spending.”