Consumer Confidence in Canada Approaching Pre-Pandemic Levels

(Bloomberg) -- Consumer confidence in Canada continued its march higher as it quickly approaches pre-pandemic levels.

The Bloomberg Nanos Canadian Confidence Index, a composite measure of financial health and economic expectations, ticked up to 52.8 last week, from 51.7 a week earlier. The index is at the highest since mid-March, and has made up more than four-fifths of its losses during the height of the pandemic.

Growing optimism among Canadians reflects continued reopening of the economy in a country that has managed to keep Covid-19 cases relatively muted.

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. Bloomberg publishes four-week rolling averages of the 1,000 responses.

Survey Highlights

• Respondents indicated a pick up in sentiment in three of the four subcomponents of the index last week: personal finances, job security and real estate
• About 29% of respondents said their finances have worsened over the past year, versus 42% at the height of the pandemic and just shy of the 27% recorded in the weeks before before shutdowns took place. The uptick in views on personal finances could continue after the federal government announced last week an extension of its marquee income support program
• Canadians views on real estate also continued to improve, consistent with recent data suggesting the housing market has been heating up over the summer. About 39% of respondents said they expect housing prices to rise in their neighborhood, versus about 46% in the weeks before the pandemic. That number had dropped to single digits in May.

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