New report sheds light on Canadian consumer sentiment
Amid macroeconomic volatility, Canadian consumers’ confidence towards their finances and the economy right now is still labouring under sustained pressures, according to new polling by Bloomberg and Nanos Research.
The Bloomberg-Nanos Canadian Confidence Index, which measures consumers’ financial health and economic expectations on a weekly basis, registered at 45.62 during the week ending January 13. This was a slight improvement on the 45.02 level seen four weeks prior, although it’s still considerably lower than the 12-month high of 59.88.
“Canadian consumer confidence in the opening part of 2023 remains mired in negativity with an overall Bloomberg-Nanos Index score below 50 in the 100 point diffusion scale,” said Nik Nanos, chief data scientist at Nanos Research. “Canadians remain net negative on the future value of real estate, their personal finances, and the future strength of the economy.”
The share of Canadians expecting an increase in home prices in their neighbourhoods over the next half-year fell from 23.34% four weeks prior to 22.11% last week. Two in five respondents (40.44%) are anticipating steady prices, while 33.23% are bracing for price declines.
The share of respondents expecting a stronger national economy in the next six months also declined from 12.5% to 11.78%. More than half (53.32%) are still preparing themselves for weaker performance, while 27.92% believe that the economy will remain stagnant during this period.
The proportion of Canadians who believed that their financial situations were better off now compared to a year ago dropped from 14.36% to 14.02%. Meanwhile, the survey found a nearly equal share between those who think that they were worse off (42.62%) and those who saw no changes to their finances (42%).
