Canadian consumer confidence stronger

Consumer confidence in Canada edged upwards in the second quarter of 2013, according to an Investors Group/Harris Decima report. It currently stands at 79.7, up from 77.6 in February. A year ago, in May 2012, the index stood at 79.0.

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“While we are detecting an uptick in our aggregate measure of consumer confidence, our Q2 findings suggest that there is still a fair amount of uncertainty in the market place,” says Harris Decima chairman Allan Gregg.

“Specifically, while more consumers believe now is a good time to make a major purchase there has been no corresponding improvement in the number of Canadians who believe the economy will be better off in a year’s time. The situation is far brighter when Canadians contemplate the state of the economy five years from now, but for the time being consumer enthusiasm seems to be held back by a lack of personal financial growth,” he adds.

Highlights of the report include:

• Almost half (45%) feel the next five years will bring good times to the Canadian economy, while 40% feel the next five years will be a time of unemployment and recession. In February, this split was 43%-41%. A majority of men and those in Manitoba and Saskatchewan feel the next five years will bring good times to the Canadian economy.
• Nearly half (48%) feel now is a good time to make a major purchase, while 32% feel it is a bad time to buy. In February, this split was 44%-38%. Men, those in urban areas of the country, and those with incomes exceeding $40k/year are most likely to feel now is a good time to make a major purchase.
• Canadians are relatively split on where they stand financially compared to a year ago. While 18% feel they are better off than they were a year ago, 20% feel they are worse off. In February, this split was 17%-19%. Residents of Atlantic Canada, and Manitoba and Saskatchewan are most likely to say they are better off than a year ago.
• Roughly one in four (23%) say they will be better off financially a year from now. Just over one in ten (13%) say they will be worse off. In February, this split was 25%-13%, suggesting little change has occurred on this question since the first quarter. Those under the age of 65, and those with household incomes exceeding $40k are most likely to feel they’ll be better off a year from now.
• One in ten Canadians (12%) say the next year will bring good times financially for the Canadian economy. Less than one in five (16%) feel the next twelve months will bring bad times financially for the Canadian economy. In February, this split was 13%-20%. Residents of the Prairies are most likely to feel the next year will see good times for the Canadian economy.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.