Canadian consumer confidence keeps rising

It’s the ninth week in a row that a consumer confidence in Canada keeps rising – mostly due a gradual economic reopening.

The Bloomberg Nanos Canadian Confidence Index, a weekly composite measure showing the financial health and economic forecasts, reached 46 last week, which is almost 10 points higher than at the start of May. Moreover, it’s moving towards the 50 point level, above which views are considered optimistic.

Growing confidence in Canada appears amid the gradual reopening of Canada’s two biggest provinces. Ontario and Quebec have shown the largest number of coronavirus cases in Canada, so they were shut down for a longer period than some other provinces.

However, earlier this month a flattening of the COVID-19 curve allowed them to start the next phase of reopenings, including salons, restaurants and malls. In addition to it, Quebec has opened all sectors of the economy with the only exceptions of festivals, combat sports and sleep-away camps.

Meanwhile, the U.S. shows a different picture with certain states facing an increase of cases. For instance, Texas and Florida, which are both reporting record rises, have stopped some of their reopenings.

Here are some other important facts:

• Job security confidence is also improving, with 66% of respondents saying they feel secure or partially secure about their jobs. It’s the largest number since the beginning of the pandemic.
• Concerns over housing prices are easing: 34% of Canadians expect a drop during the next 6 months, while it was 49% in May.
• Canadians’ opinion concerning personal finances improved slightly last week but was still at a depressed level, as only 13.5% of respondents felt their financial situation has changed for the better during the previous year.