Consumer confidence in Canada has rebounded to levels not seen since before Christmas as hopes for the economy reach new levels.
The Bloomberg Nanos Consumer Confidence Index has reached a high of 54 – representing a climb from 53.4 a week earlier. This also places it at its peak level since December last year as we prepare for the Canadian budget next week.
According to a Bloomberg
report, the change in sentiment was driven by consumers’ opinions about the prospects for both real estate and the country’s economy in general. It was not a reference to job security or personal finances.
The expectations sub-index crept up to 50.2 as more respondents expect that the economy will grow and that house prices within their neighbourhood will also rise. It is the first time that the index had risen above 50 since December: placing it into positive territory. Readings were notably high in British Columbia, registering at 59.5. It was followed by Ontario at 58.3.
Meanwhile, expectations surrounding housing have also grown. According to the survey, 34.2 per cent believe that prices within their neighbourhood are likely to increase during the next six months: that’s a rise from 32.8 per cent. Meanwhile, those expecting a decrease dropped from 20.4 per cent to 18.6 per cent.
Despite the rises, however, consumer confidence is still short of the 12month average, which stands at 55.
With regards to personal finance the outlook for Canada remains mixed. Those who say their personal finances are better off than one year ago has increased to 14.8 per cent; while those who believe their job is secure slipped to 69.1 per cent.