RBC: Economic confidence drops

By John Powell | October 1, 2010 | Last updated on October 1, 2010
1 min read

Canadians are starting to get worried.

The results of RBC’s Canadian Consumer Outlook Index for September indicate that on the whole, the faith Canadians have in the economy is slipping. 60% believe the overall outlook is good. That is down seven points from last quarter.

Job anxiety has climbed two points to 22% and fewer Canadians (46%) now think the national economy will improve. That figure is down nine points from just three months ago.

All told, the Index fell 14 points driven by declines in all three sub-indexes: current conditions, expectations, and personal investments.

The biggest economic issue on the minds of Canadians is the money they owe. 51% are determined to reduce their debt while four-in-ten (39 per cent) say they plan on spending less.

“It’s good to see people focused on debt management and reduction,” said Andrea Bolger, senior vice-president, Personal Financing Products, RBC. “It’s important that Canadians feel confident and understand that managing debt is crucial to their financial success.”

Other national highlights:

  • Personal Financial Situation (Overall): The percentage of Canadians who think that their personal financial situation will improve in the next three months remains stable at 26% in September. 39% of Canadians expect their personal economic situation to improve over the next year.
  • Interest Rates: 66% of Canadians think interest rates are going up in the next six months, a significant decrease from the last quarter (84%). 28% expect that interest rates will stay the same over the same period.
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