Consumer Sentiment Among Canadians Enters Standstill As 51% Anticipate Economy Will Contract Once Again
Following the Federal Government’s pledge for additional emergency spending in face of the coronavirus pandemic, as well as economists’ prediction of an impending economic slowdown, it appears that the decreasing likelihood that Canada’s output will recover to pre-pandemic levels anytime soon is turning into the general consensus among Canadian consumers. The Bloomberg Nanos Canadian Confidence Index rose by a mere 0.4% to 53.1 in September, suggesting that an economic standstill is underway.
According to the index, which each week measures Canadian’s sentiment and the financial well-being of Canada’s economy, it’s been found that consumer optimism regarding a positive economic outlook within the next six months has fallen to 18.9% at the end of September, which amounts to a decline of 3.1% since August. Conversely, approximately 51% of respondents anticipate that Canada’s economy will diminish even further, while 14% of Canadians remain at least somewhat concerned regarding future job security.
However, given the apparent prosperity of Canada’s housing market despite the downturn that has affected all other sectors of the economy, 44% of respondents anticipate that the value of real estate in their neighbourhood will increase within a span of six months. This figure has increased by 4% since August to the highest reading in nearly seven years. In the meantime, nearly 28% of Canadians feel that their financial situation has deteriorated since the onset of the pandemic, a figure which still remains more than 30% below readings during the height of the pandemic.
Information for this briefing was found via the Bloomberg Nanos Canadian Confidence Index. 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.
