Canadians continue to gain confidence in economic recovery

The latest weekly barometer of consumer sentiment has ticked higher as personal finances and real estate gain

Canadians continue to gain confidence in economic recovery
Steve Randall

Expectation of an improving economic situation has given a further boost to a measure of Canadian consumers’ confidence.

The weekly poll from Bloomberg and Nanos Research shows a 52.81 score for last week, up slightly from the previous week and well above the 2020 low of 37.08 recorded in April.

Increased confidence has also been revealed in the latest retail trade figures from Statistics Canada which revealed increased spending as lockdowns eased.

Sentiment improved across the four key components of the Canadian Consumer Confidence Index which is made up of two indexes: one tracking personal finances and job security; and one tracking expectation for the economy and real estate over the next six months.

Although the share of respondents reporting that their personal finances have improved over the past year increased, at 15% it is still almost half that of the 29% who said their situation was worse. This has decreased from the 42% who said they were worse off at the height of the pandemic and within 2 points of the pre-pandemic measure.

Weaker economy

A larger share (46%) believes that the Canadian economy is weaker than a year ago compared to those who think it is stronger (25%).

The shares of positive responses for job security and real estate price expectations remain larger than the negative shares. Real estate prices have gained in recent months but growth appears to be slowing according to a nationwide house price index.

The overall increase in confidence was seen across all age groups and income bands, along with all regions except for Atlantic Canada.