Decline in optimism reflected in lower confidence levels
A recent survey by Research Co. has highlighted lower satisfaction levels among Canadians regarding their national economy and personal financial stability. The study, conducted between August 5 and August 7, has revealed that economic confidence has sharply declined over the past few months, with inflation concerns exacerbating financial worries.
Currently, just 32% of Canadians view economic conditions as “very good” or “good,” a decline from 35% in January. Conversely, 64% now consider the economy “poor” or “very poor,” up from 61% earlier in the year. The sentiment is particularly pronounced in Alberta, where 79% of residents are dissatisfied, followed by British Columbia at 66%.
Personal financial perceptions have also worsened. For the first time since tracking began in January 2022, 51% of Canadians describe their own finances as “poor” or “very poor,” a nine-point increase from earlier this year.
The proportion of those rating their financial situation positively has decreased to 46%. Regional disparities are notable, with Alberta showing the lowest level of satisfaction at 38%, while other regions like British Columbia and Atlantic Canada report higher positive perceptions at 45%.
Disparities in confidence levels
The survey revealed a significant generational divide, with Canadians aged 35 to 54 being the least optimistic about their finances. Gender differences are also evident, as men are more likely than women to believe in a stable economy and feel their personal finances are not struggling.
Concerns about inflation have risen sharply, with many Canadians expecting higher costs in the coming months. The majority anticipate increased prices for gasoline (77%), groceries (76%), and real estate (65%). Additionally, more than half of Canadians are worried about their investments (52%) and savings (51%), reflecting heightened financial anxiety.
Looking ahead, the survey indicates a prevailing scepticism about economic improvement. About 34% of Canadians expect the national economy to decline, while 43% foresee no change, and only 15% are optimistic about a positive turnaround.
Political trust remains relatively stable, with 36% of Canadians trusting Prime Minister Justin Trudeau to manage the economy effectively, a slight decrease from earlier in the year. Official Opposition leader Pierre Poilievre holds a marginally higher trust rating at 41%, while Bank of Canada Governor Tiff Macklem’s rating stands at 35%.
In British Columbia, only 37% believe Poilievre can positively impact the economy, comparable to Trudeau’s 36% trust rating.
“We may be more concerned about money than we were in January, but the momentum for the Conservative leader on this particular file seems to have stalled,” noted Mario Canseco, president of Research Co.
This survey reflects growing economic unease among Canadians and highlights the challenges facing policymakers in addressing financial instability and inflation concerns.
Results are based on an online study with a margin of error of ±3.1 percentage points, 19 times out of 20.
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