The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
For the second consecutive quarter, consumer confidence across Canada has decreased, and is now at the lowest level recorded in more than two years. Based on a nation-wide survey conducted by Decima Research Inc. in May, the Decima-Investors Group Index of Canadian Consumer Confidence now stands at 79.5, down 7.1 points since February. This is the lowest level recorded in Canada since November 2001, when the index stood at 79.0. "Upcoming elections and ongoing geopolitical tensions, combined with gas prices that are putting upward pressure on core inflation and the prospect of rising interest rates, are all playing a part in continued consumer uncertainty," said Bill Chornous, Partner, Investors Group. "However, recent robust job growth and a relatively healthy economy are likely to have a positive impact on confidence going forward." In the United States the Index of Consumer Sentiment published by the University of Michigan stands at 90.2 (this measure is directly comparable to the Decima-Investors Group Index). The U.S. index is also down from 94.4 in February this year. Confidence is down in all regions of Canada, although the declines on the Prairies (down 3.5 in Alberta and down 3.1 in Manitoba and Saskatchewan) are not as large as elsewhere. The biggest drop this quarter is among older Canadians (aged 55 and older, down 11.3 points from February). Consumer Expectations There has also been a decline in consumer expectations about economic conditions into the future (over the next year and beyond). The consumer expectations sub-index (one of two components comprising the overall index), has decreased 8.4 points since February, and now stands at 73.1 in Canada. Consumer expectations are also down in the U.S. this quarter, although not to the same extent as in Canada. The U.S. expectations index now stands at 81.6, down 6.9 points since February, but is still 8.5 points higher than the comparable Canadian figure.
