Canadians admit to widespread unease toward global and domestic economic situations
Amid ever-growing inflation levels, Canadian consumer confidence levels are moving closer to near-record lows, according to the latest sentiment poll by Bloomberg and Nanos Research.
The Bloomberg-Nanos Canadian Confidence Index was at 48.28 as of the week ending June 24, versus 53 just four weeks prior. This was a far cry from the 12-month high of 66.42, reflecting widespread unease toward the global and domestic economic situations.
Nanos Research said that the measure dipped below 50 only during the worst of the pandemic-induced lockdowns and the great financial crisis of 2008-09. The annual inflation rate reached a new record high of 7.7% in May, its highest level since 1983.
“Canadian consumer confidence has now veered into negative territory with a score below the 50-point mark on the 100-point Bloomberg-Nanos diffusion index. Real estate confidence remains net positive but has been plummeting in terms of the future value views,” said Nik Nanos, chief data scientist at Nanos Research.
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The share of respondents expecting an increase in home prices in their neighbourhoods over the next six months dramatically fell to 36.59%, from 51.62% just four weeks prior. Another 31.13% are anticipating steady prices, while 28.53% share are preparing themselves for price declines.
The proportion of Canadians expecting a stronger national economy in the next half-year fell from 18% to 13.64% in that four-week period. The majority (56.88%) are bracing for weaker performance, while 23.56% believe that the economy will remain stagnant over the next six months.
