The housing collapse, the economic crisis is reducing consumer confidence in Canada | So Good News
Canadian consumer confidence has plummeted amid the global financial crisis.
The Bloomberg Nanos Canadian Confidence Index, a weekly poll-based opinion poll, declined for a fifth week to hit some of the worst levels seen in the past two financial crises.
Canadians have been less optimistic about the economy since the index was launched in 2008. Half of Canadians expect the economy to weaken in the next few months, while only 14 per cent expect a stronger economy.
The figures are close to overturning the small sentiment in August and show households struggling with rising consumer prices, higher credit costs, housing reforms, lower stock markets and news of a recession.
The disappointment raises questions about whether Canadian consumer spending will continue to boost the country’s economy.
Each week, Nanos Research polls 250 Canadians on their views on the economy, job security, the economy and real estate prices. Bloomberg publishes a total of 1,000 telephone responses over a four-week period.
Here are some highlights of the survey:
- The index reached 46.5 last week, the weakest reading since July 2022, while it was the lowest since the early months of the COVID-19 pandemic.
- Until this year, the number had dipped below 50 during the height of the epidemic in early 2020, and during the financial crisis and recession of 2008 and 2009. It has averaged 56 over the past decade.
- Another driver of poor sentiment is how the housing market is growing. The survey found that 37 percent of respondents expect house prices to fall in the next six months, compared to 26 percent who see an increase. The 11-point difference is much larger than in the early weeks of the pandemic and the global financial crisis.