Consumer confidence is on the rise in Canada, with the index currently standing at 75.3, compared with 72.6 in November.
Just over one in 10 Canadians (13%) sees good times ahead for the economy in the next 12 months, with pessimism dropping to 22% from the 30% seen in November.
Almost half (43%) of Canadians believe that now is a good time to make a major purchase, while only 38% nationally believe it is a bad time to make such a purchase. In November, this split was even among Canadians, so businesses should see more consumer purchases as the year progresses.
More than four in 10 (42%) believe there will be good times financially for the Canadian economy in the next five years, while 45% believe there will be unemployment and recession over this period. This represents minimal movement from November when the split was 42% and 46%, respectively, and marks the beginning of an improved national outlook.
In total, 25% of Canadians believe they will be better off financially a year from now; conversely, only 15% feel they will be worse off a year from now. This split remains relatively unchanged from November when it was 25% and 14%, respectively.
In terms of how people perceive the last year, 16% indicated they were better off financially compared with a year ago, while 24% feel they are worse off.
According to Doug Anderson, senior vice-president with Harris/Decima, “While the confidence of Canadian consumers has improved slightly over the past quarter, the remarkable rebound in American consumer confidence has finally brought both countries to an equally optimistic outlook.”
He adds, “After years of [Americans] consistently holding a more optimistic outlook than Canadians, the financial crisis of 2008 saw confidence in both countries wane but affected the American confidence far more dramatically than it affected Canadian confidence. This quarter appears to mark the closure of that downturn.”
“An increase in consumer confidence is good to see,” said Dave Ablett, director of advanced financial planning with Investors Group. “Canadians appear to have confidence in the Canadian economy and remain well positioned to plan, save and invest for their future.”