The six-month streak of inflation exceeding the central bank’s target rate is fuelling fears and uncertainty
Canadians’ confidence in the long-term prospects of housing and the economy continues to waver, according to a new survey.
National inflation reached an 18-year high of 4.4% in September per Statistics Canada data. This marked the sixth straight month that the rate exceeded the Bank of Canada’s policy target of 1% to 3%.
“Consumer confidence in Canada continues to marginally decline in the week over week and month over month tracking,” said Nik Nanos, chief data scientist at Nanos Research.
In the week ending Oct. 22, the Bloomberg-Nanos Canadian Confidence Index registered at 58.97, compared to the 60.86 level four weeks prior. The 12-month high is currently at 66.42, while the average for the index since 2008 is at 56.54 with a low of 37.08 in April 2020 and a high of 66.42 in July this year.
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Positive views on housing registered at just 50.17, versus 51.54 the week before and 53.28 four weeks prior. The share of Canadians believing that home prices will increase in their respective neighbourhoods over the next six months was at 50.17%, while 10.48% are bracing for declines and 35.18% are expecting prices to remain static.
The economic optimism index was at 27.86, improving from 25.98 the week before but still weaker than 29.06 four weeks prior. The share of Canadians expecting the economy to weaken in the next six months (34.49%) now outstrips those who are looking forward to a stronger economy by then (27.86%). Another 30.78% are preparing for economic stagnation over the next half-year.
