Fears surrounding elevated inflation are taking their toll
While Canadian consumers’ sentiments towards housing remain somewhat positive, confidence towards the economy is reaching record lows, according to the latest poll by Bloomberg and Nanos Research.
The Bloomberg-Nanos Canadian Confidence Index stood at 58.87 as of the week ending Feb. 11, versus the 56.98 reading four weeks prior and the 12-month high of 66.42.
“Consumer confidence continues to skirt above 50 points on the Bloomberg-Nanos Canadian Confidence Index. Of note, consumer confidence in the province of Ontario has hit a low not seen since November 2020,” said Nik Nanos, chief data scientist at Nanos Research.
The sub-index on personal finances and job security was at 56.98 compared to 55.52 four weeks prior. Meanwhile, the sub-index on the outlook for the economy and real estate prices was at 56.32 compared to 56.27 four weeks ago.
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The share of respondents expecting an increase in home prices in their neighbourhoods over the next six months remained static at 60.8% over the past two weeks. Another 26.81% are anticipating steady prices, while 8.49% are preparing themselves for price declines.
The proportion of Canadians expecting a stronger national economy in the next half-year fell from 21.3% to 19.64%, likely driven by anxiety over the three-decade-high annual inflation rate. Another 46.66% are bracing for weaker performance and 28% believe that the economy will remain stagnant during this period.
