Lost jobs and high debt levels mean a difficult recovery ahead: Manulife chief economist
Consumer confidence is showing signs of improving in Canada after weeks of record lows from business shutdowns and strict social distancing measures.
The Bloomberg Nanos Canadian Confidence Index, a composite gauge based on weekly telephone and online polling, ticked up slightly to 38.73 in its second-straight gain after more than two months in free fall. While the index remains near its worst-ever reading, the slight rise in confidence suggests that negative sentiment may be plateauing amid talk of reopening the economy.
“After a steep decline in consumer confidence, weekly tracking in the Bloomberg Nanos Canadian Confidence Index suggests a flattening of the negative trajectory,” pollster Nik Nanos said by email. He added that the forward-looking expectations subindex “realized a minor lift in sentiment.”
Canadians’ views on their personal finances, their perceptions of job security and their expectations for the economy all improved. Housing, however, was a weak spot, with a record number of respondents expecting the value of real estate to decrease in the next six months.
The poll is a hybrid telephone and online random survey of 1,000 Canadians, with a margin of error of 3.1 percentage points. It was taken for the week ending May 8.