ECONOMY Canadians continue to shed pessimism
Canadians are slowly shedding their pessimism about the economy as provinces gradually reopen from the pandemic-induced shutdowns, with the consumer confidence edging higher for a seventh straight week.
The Bloomberg Nanos Canadian Confidence Index, based on a random survey of Canadians, rose to 42.86 last week from 41 a week earlier.
While the index still remains well below the historical average, it has continued to inch higher from record lows in April.
“Although consumer confidence remains net negative, there are emerging signs in the data of a potential confidence recovery,” Nik Nanos, chief data scientist at Nanos Research, said in the report. “Perceptions on the future strength of the Canadian economy has improved seven points compared to four weeks ago.”
The survey shows Canadians are increasingly buying into the idea that the impact of the pandemic has peaked, with 20.2 per cent saying they believe the economy will strengthen over the next six months.
Pessimists still outnumber optimists by almost four to one, with 62 per cent saying the economy will be weaker.
But that’s better than a few weeks ago when 80 per cent of Canadians saw the economy weakening, with only seven per cent expecting it to strengthen.
The improvement in consumer sentiment coincides with other recent data that suggests the economy is starting to recover after activity collapsed in April at the height of the COVID-19 shutdowns.
Credit card transactions, restaurant bookings and mobility data all show Canadians have begun to venture out and spend money.
New job postings on Indeed Canada, meanwhile, indicate businesses are starting to hire again.
Statistics Canada data released earlier this month showed the economy added 290,000 jobs in May, helping to recoup a portion of the nearly three million jobs lost during the pandemic.
Every week, Nanos Research surveys 250 Canadians for their views on personal finances, job security and their outlook for the economy and real estate prices.
The index averaged 57 in the year prior to the crisis.
Scores above or below 50 indicate net positive or net negative views on the economic mood of Canadians.