Canadian Consumer Confidence Soars to New Record Amid Housing Boom

Consumers across Canada are becoming increasingly optimistic about the country’s economic recovery, as the ongoing vaccine rollout continues to accelerate and the housing boom gains even more momentum.

The latest Bloomberg Nanos Canadian Confidence Index print, which measures consumer sentiment via household surveys, rose to 63.7 last week— the highest reading on records dating back to 2008. In the past six weeks alone, the index jumped by more than 7 points; prior to the pandemic, it sat at around 56, its historical average.

Much of the optimism is centered around the housing market, which has been surging amid record-low borrowing rates and homebuyer’s demand for more space. The Nanos survey found that 63% of respondents foresee real estate values in their neighbourhood increase within the next six months, suggesting the housing boom is gaining even more traction.

Moreover, optimism regarding Canada’s economic outlook also appears to be growing, as 42% of Canadians anticipate the economy will be stronger in the next half of the year— marking the highest share of respondents for the question in over a decade.

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.

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