Canadian Consumer Confidence Jumps to New Record Amid Reopening Efforts
Consumer confidence among Canadians soared to yet another record last week, as key regions across the country begin lifting restrictions amid the ongoing vaccination efforts.
The latest Bloomberg Nanos Canadian Confidence Index rose to 65.7 last week, marking the highest reading since records began in 2008. The jump was primarily driven by new optimism surrounding the country’s economic outlook, as well as Canadians’ improved attitudes about their personal finances.
The latest sentiment reading sparks an increased level of confidence in the economy, as economists and policy makers anticipate consumers will increase their spending once the country emerges from strict lockdowns— particularly in Ontario and Quebec. In the meantime, economists polled by Bloomberg anticipate economic growth will likely subside to a low of 2.5% annualized in the second quarter, but is expected to jump to 6.6% in the second half of this year.
The increase in sentiment was broad-based, as Covid-19 case numbers continue to fall amid strong vaccination efforts across Canada and even south of the border. The share of Canadians that foresee the economy getting stronger within the next six months rose rose to 48% last week— the second-highest on record. Likewise, the country’s red-hot housing market is also expected to continue its momentum, as 62% of respondents anticipate property values in their neighbourhood will increase.
Information for this briefing was found via Nanos Research and Bloomberg. 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.
