Canadians have become considerably pessimistic over their economic and housing prospects, new survey reveals
Canadian consumer confidence has plummeted to a 17-month low amid the stark reversal in the national housing market’s performance, according to a new poll by Bloomberg and Nanos Research.
The Bloomberg-Nanos Canadian Confidence Index for the week ending May 13 registered at 54.32, significantly lower than the 57.24 four weeks prior and the 12-month high of 66.42.
“Consumer sentiment is currently on a downward trajectory,” said Nik Nanos, chief data scientist at Nanos Research. “Views on the future value of real estate and the future strength of the Canadian economy have been weakening over the past few weeks.”
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The sub-index on personal finances and job security was at 56.22 compared to 56.45 four weeks prior. Meanwhile, the sub-index on the outlook for the economy and real estate prices was at 52.42 compared to 58.02 four weeks ago.
The share of respondents expecting an increase in home prices in their neighbourhoods over the next six months fell to 54.45%, from 63.65% just four weeks prior. Another 29.4% are anticipating steady prices, while a substantial 12.5% share are preparing themselves for price declines.
The proportion of Canadians expecting a stronger national economy in the next half-year fell from 22.23% to 17.96% in that four-week period. Fully half (50.22%) are bracing for weaker performance and 26.28% believe that the economy will remain stagnant over the next six months.
