Canadians Confident in their Economy

Consumer confidence in the current state of the Canadian economy has risen dramatically since mid-November, and the outlook for future performance is also better, according to the latest findings from TNS Canadian Facts' Consumer Confidence Index.

TNS Canadian Facts' monthly tracking of consumer confidence indicates that the overall picture today is overwhelmingly positive.

The Present Situation Index, which captures evaluations of the overall state of the economy, the employment situation and household income, now stands at 110.6, a slight decline from 111.7 in February but up significantly from 98.0 a year ago.

While Canadians' assessment of the current economy has faltered slightly, the Expectations Index, which measures consumers' estimation of the economy six months from now, rose to 103.5 from 101.8 the previous month. This represents the highest level of optimism about the future economy since the index was created nearly two years ago.

The Buy Index, which gauges the degree to which people think the current period is a good time to make major purchases, fell slightly. The Index now sits at 97.5, down 1.4 points since last month.

Confidence is higher on two of the three measures today than it was a year ago. The Present Situation Index is up a significant 12.6 points from where it stood in March 2005 (110.6 today versus 98.0 a year ago). Meanwhile, the year-over-year rise in the Expectations Index is a respectable three points (103.5 today from 100.6). But the Buy Index is down 7.1 points from where it was this time last year (97.5 today from 104.6).

According to Richard Jenkins, vice president of TNS Canadian Facts, 'The public's confidence mirrors strong economic statistics. Canadians are clearly feeling that the Canadian economy is not headed for a downturn anytime soon.'

Regionally, positive assessments of the economy (current and future) continue to be highest on the Prairies (particularly Alberta) and lowest in Quebec and the Atlantic region. For example, 67% of those who live in the Prairie provinces (75% in Alberta) think the economy is good compared with 46% in Quebec and 51% in the Atlantic Provinces.

Mr Jenkins added, 'Though regional disparities in terms of economic fortunes are clearly evident, the performance of the economy over the past several years has benefited all regions to varying degrees, and has perhaps insulated the federation from the strains of economic inequality so far.'

The Consumer Confidence Index is part of a global study conducted by TNS in 18 countries around the world. A total of 1,015 nationally representative Canadian adults were interviewed between March 6 and 9. The survey results are considered accurate to 3.1 percentage points, 19 times out of 20.

TNS Canadian Facts is online at www.tns-cf.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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