Consumer confidence slid for a third straight week, as an increasing number of Canadians remain concerned over the country’s worsening economic outlook.
The latest Bloomberg Nanos Canadian Confidence Index slid one point to 61.6 in the previous week, marking the lowest reading since March. The figure is now 3.5 points lower compared to three weeks ago, and nearly 5 points below July’s record-high.
The survey, which collects the views of 250 respondents across Canada, also found that the proportion of Canadians expecting the economy to gain momentum over the next six months slide from 54% at the beginning of July to 35% last week. Similarly, an increased number of respondents also indicated a worsening outlook regarding their personal finances as well as the real estate market.
Deteriorating sentiment regarding the trajectory of the economy has been the primary factor behind the overall optimism decline, coupled with growing fears of the rapidly spreading delta variant alongside a fourth wave of the pandemic. Moreover, the recently released GDP print showed that Canada’s economy contracted 1.1% in the second quarter against expectations of a 2.5% increase, suggesting that the economic recovery is a lot further behind that previously expected.
Information for this briefing was found via Nanos Research. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.