Canadian consumers optimistic about the economy
The Nielsen Company has released the results of its latest Nielsen Global Consumer Confidence Index.
It seems Canadian consumer confidence continues to rise, up two index points since the first quarter.
Canadian consumer confidence has also bested many nations around the globe, including the U.S.
Other findings include:
• Fewer Canadians think the country is in a recession. Fifty-six per cent of Canadians think the country is in a recession, compared to 65 percent believing so in Q1.
• However, of those that think the country is in a recession, only 26 per cent think the country will be out of the recession in the next 12 months, compared to 37 per cent believing so in Q1.
• While about one-third (34 per cent) of Canadians plan to spend spare cash on paying off debts, credit cards and loans after covering essential living expenses, this is down from Q1 (40 per cent).
• Fewer Canadians will put spare cash into savings (27 per cent in Q2 compared to 37 per cent in Q1) and retirement funds (10 per cent in Q2 compared to 14 per cent in Q1).
• Canadians indicate increased spending on holidays (26 per cent in Q2 compared to 24 per cent in Q1) and out-of-home entertainment (26 per cent in Q2 compared to 18 per cent in Q1).
• Also on an upward trend: Canadians’ perceptions of local job prospects over the next 12 months and perceptions of it being a good time to buy things they want and need over the next 12 months.
According to Nielsen, Canada is showing a slow but steady climb out of the economic recession.
And Canadian consumers are optimistic, but debt, increased utility bills and the HST are a concern.
“The threat of rising interest rates is also likely having some impact on consumer confidence,” says Carman Allison, director of Industry Insights at Nielsen.
“Given these factors we expect to see some restraint, a new normal, for some time to come.”