Economic Sentiment Among Canadians Declines as COVID-19 Cases Continue to Soar

As an alarming second coronavirus wave overcomes many parts of Canada, the outlook on the economy grows more bleak. According to the Bloomberg Nanos Canadian Confidence Index, which surveys consumers across Canada regarding their personal views on job security, finances, the state of the economy, and real estate prices, the number of Canadians that continue to feel optimistic about future economic expectations is dwindling at an alarming rate.

Only a mere 12.9% of the survey’s respondents foresee Canada’s economy strengthening over the next six months, which is the lowest share since the beginning of May. As a result, the confidence index fell to 51.8 points, after dropping for four consecutive weeks following a post-pandemic high of 53.2 in September. In the meantime, the share of Canadians that believe the economy will weaken over the next six months increased to 56%, thus outnumbering optimists four-to-one.

The deteriorating attitude among Canadians is a reflection of the reintroduction of containment measures in provinces that are seeing an alarming resurgence of the virus, including Ontario and Quebec. The new lockdown measures have lowered the limit on social gatherings, as well as mandated the shutdown of gyms, restaurants, and bars. The number of active cases across Canada has grown to 24,177, which is over double compared to the prior month.

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.

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