Canadian Consumer Confidence Soars to New Record Amid Strong Vaccine Rollout
Consumer sentiment among Canadians has risen to a new record-high, as provinces across the country lift public health restrictions and economic output regains momentum.
The latest Bloomberg Nanos Canadian Confidence Index rose to 66.42 for the week ending on July 2, marking the highest reading on records dating back to 2008. On average, the reading has hovered at an average of 56, and has never exceeded the 63 mark until recent. Consumer sentiment has been steadily increasing since the beginning of spring, as Canada’s vaccine rollout continues to gain momentum.
The jump in sentiment was largely broad-based, as the survey’s respondents reported elevated optimism regarding the economy’s outlook, real estate expectations, and job security. Nearly 54% of Canadians anticipate that the economy will be stronger in the next six months, marking the highest proportion for the question on record. The housing market is also slated for added optimism, as 59% of respondents expect the value of housing properties in their neighbourhood to rise. At the same time, Approximately 70% of Canadians said that their job is at least somewhat secure.
The latest survey results will increase confidence levels among economists and policy makers, as Canadian households are now more likely to spend on goods and services as the economy reopens. According to a recent Bank of Montreal report cited by Bloomberg, households across Canada have amassed a combined estimated $220 billion in savings throughout the pandemic, which is in addition to the $2 trillion in wealth effects as a result of the increase in property values.
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.
