Canadian Consumer Confidence Reaches Highest Level Since Beginning of Pandemic
Following recent announcements on positive vaccine outcomes that could further advance economic recovery, consumer confidence among Canadians rose to the highest level in eight months.
According to the latest Bloomberg Nanos Canadian Confidence Index reading, which measures financial health and consumer outlook within the economy, the index rose to 53.3 in the prior week. This is the highest reading since the middle of March, when much of the country delved into widespread lockdowns and social distancing measures to mitigate the spread of Covid-19.
Although the index still remains lower than its long-term trending average, the increase in sentiment is likely due to growing optimism surrounding the upcoming rollout of several vaccines – some of which are expected to get underway this week. In fact, the UK is set to begin distributing Pfizer Inc.’s shot as early as Tuesday, which the US could then approve on Thursday. Then, Canada is anticipating to approve the vaccine shortly after America’s approval.
Nonetheless, results of the Nanos Bloomberg survey also found the number of respondents that foresee Canada’s economy strengthening within the next six months rose to 19.9% – the highest since the month of September. Meanwhile, real estate optimism continues to climb, coinciding with recent increases in home sales and resulting rise in home prices. Nearly 45% of respondents anticipate that the value of homes in their neighbourhood will escalate over the next six months.
Information for this briefing was found via 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.
