Consumer confidence grows in Canada due to more optimism at housing markets
The latest weekly survey shows that consumer sentiment in Canada has improved amid more optimistic forecast on housing market and the national economy.
The Bloomberg Nanos Canadian Confidence Index saw the largest one-week increase since mid-June from 46.7 to 48.4. As a result, it has offset more than half of losses seen since dropping to its record low level at the beginning of May.
This gain is encouraging as earlier the index stopped growing, even despite reopening plans and COVID-19 case numbers remaining relatively low. As millions of Canadians still can’t work and receive government aid, opinions concerning personal finances and job security were still pessimistic. In addition to it, economists believe it could take years for Canada to recover fully.
Each week, Nanos Research polls 250 Canadians for their opinion on personal finances, job security and their forecasts on the national economy and housing prices. Bloomberg releases the four-week average results.
Here are some of the main highlights:
- Housing sentiment is still the only one which keeps improving. This time, 28% of respondents said they expect the cost of properties in their neighborhood to go up over the next six months. Meanwhile, it was only 9% two months ago.
- The number of Canadians who believe the economy will be stronger in the next six months rose by 3% and reached 23%. It’s consistent with the latest data on retail spending, employment and inflation which point to the economic rebound in summer right after the reopening plans in Canada.
- The weakest consumer confidence was reported among the age group of 40-49 years old, while those age 60 and over showed the strongest results.