Canadians' confidence in the economy and the housing market now in 'positive' territory
Overcoming the previous generalized market pessimism, Canadian consumer confidence is at its strongest in four months, according to a new poll by Bloomberg and Nanos Research.
The Bloomberg-Nanos Canadian Consumer Index registered at 51.42 in the week ending January 19, compared to the 50.33 level four weeks prior. The 12-month high remained at 53.12, while the average since 2008 has been 55.45 with a low of 37.08 in April 2020 and a high of 66.42 in July 2021.
“Canadian consumer confidence remains in marginally positive territory with a score just above 50 on the 100-point diffusion index,” said Nik Nanos, chief data scientist at Nanos Research.
“Of note, current confidence is at a level not seen since September 2023.”
As the Bank of Canada gears up to announce its next interest rate decision, economists will be on the lookout for any clues on when it plans to start cutting interest rates.
— Canadian Mortgage Professional Magazine (@CMPmagazine) January 23, 2024
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Still, the share of Canadians expecting a stronger national economy in the next half-year languished at a dismal 16.16%, an even lower share than the 16.55 level seen four weeks prior. Nearly half of all respondents (47.09%) are expecting weaker performance in the next six months, while 31.4% believe that the economy will remain stagnant during this period.
The share of Canadians expecting an increase in housing prices in their neighbourhoods over the next half-year stood at 43.98%, representing a slight improvement from the 43.59% reading four weeks before.
