Consumer confidence dips

Canadian consumer sentiment dipped in the second quarter, but most expect the country will enjoy positive economic results over the coming five years, according to a Harris/Decima survey for Investors Group.

The overall confidence reading edged lower to 83.7, from its first quarter reading of 86.2, but Canadians are still more optimistic than Americans, who have a confidence reading of 74.3.

“The fluctuations in American consumer confidence have been more dramatic than in Canada where confidence has been relatively stable for about two years,” says senior vice-president Doug Anderson. “That being said the drop in Canadian consumer confidence reverses the trend of the past two quarters.”

A quarter of Canadians expect to see their personal financial situation improve over the coming year, compared to 15% who expect to be worse off. In February, the split was 31% to 13%.

On the overall economy, 24% expect good times over the next 12 months, compared to 13% who had a negative outlook. But for the five-year horizon, opinion is more strongly polarized: 56% expect good times, while 30% expect higher unemployment and a return to recession.

Forty-nine percent said now was a good time to make a major purchase, while 33% thought it was a bad time for large purchases.

“The continued strength of Canadian consumer confidence is impressive,” said Jack Courtney, assistant vice-president of advanced financial planning at Investors Group. “The overall impression of the stability and potential for growth in the Canadian economy helps Canadians feel more comfortable when making their own personal financial planning, saving and investing decisions.”

When asked how they fared over the past year, just 15% said they were better off, while 26% fell they are worse off.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.