Consumer confidence surges in Canada

The easing of lockdown restrictions in Canada is propelling a surge in consumer confidence levels.

The Bloomberg Nanos Canadian Confidence Index, a gauge of household sentiment, jumped last week to the highest since October 2019 after the country's two largest provinces — Ontario and Quebec — began to unwind containment measures.

The easing of restrictions, combined with an ongoing vaccine rollout and hot housing and stock markets, are keeping the sentiment elevated despite concerns around COVID-19 variants and their spread. The bounceback in confidence highlights how Canadian households have emerged from the deep economic crisis largely intact. That's stoking expectations consumers will drive the recovery in coming months.

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 jumped to 58.2 from 56.5 the previous week, the largest one-week increase since July.

The index had plunged by a record one third in March and April, before beginning its climb back over the summer.

The rebound stalled between September and November amid a second wave of virus cases, but the rollout of COVID-19 vaccines has sent sentiment levels back up, buoying everything from job security to the economic outlook.