2022 begins with a weaker consumer confidence index in Canada

The recent survey by Bloomberg and Nanos Research shows that Canadians’ sentiments in terms of real estate and the economy keep changing amid the risk of a more contagious COVID-19 variant.

The week ending on January 7 saw the Bloomberg-Nanos Canadian Confidence Index falling to 57.08, from 59.98 four weeks before. The highest number during the previous 12-month is 66.42 (July 2021). Meanwhile, the average index has been 56.60 since 2008, and the lowest result of 37.08 was reported in April 2020.

“Consumer confidence keeps eroding amid all the attention to the Omicron variant,” noted Nik Nanos from Nanos Research. “Forecasts on the future strength of the national economy were down by 6% during the previous four weeks.”

The number of Canadians who predict a stronger economy over the next six months was down to 17.73%. At the same time, the share of those who expect weaker results rose to 48.07%, and the number of respondents expecting a stagnant economy remained unchanged at 27.6%.

The proportion of Canadians who expect real estate prices in their neighbourhoods to go up during the next half a year fell from 63.05% to 60.76%, while 29.13% of respondents believe the prices will not change, and 6.86% predict a prices decline.