Consumer confidence hits highest level in 7 years

The Conference Board of Canada’s Index of Consumer Confidence rose nine points in February to 110.6. This was the largest monthly increase since March 2015, putting the index at its highest level in more than seven years.

“February’s gains suggest the recent string of solid job creation at the national level as well as the improved economic outlook for 2017 have Canadians feeling more upbeat,” said Matthew Stewart, Associate Director, National Forecasting.

Quebec and Ontario had the most significant improvements in consumer sentiment, with increases of 13.9 and 10.5 points, respectively. Both provinces are highly dependent on trade with the United States, which is continuing to show solid economic momentum and strong job creation. Also, the first meeting between President Trump and Prime Minister Trudeau may have also helped to allay some fears.

Consumer confidence also increased in Alberta in February, with the provincial index rising 8.2 points to 67.5 – its highest level since March 2015. The recent stability in crude prices above US$50 a barrel seems to have translated into optimism in Alberta about the future course of the province’s economy. And, despite a weak employment performance last month, expectations regarding job prospects improved for the fourth consecutive month in February.

However, even after reaching a near two-year high in February, Alberta’s index remains more than 30 points below its 2014 average.

The Saskatchewan–Manitoba index also rose, by 7.1 points to 83.9. Manitobans were feeling significantly more optimistic about their household finances and the prospect of making a major purchase. Meanwhile. British Columbia’s index rose 2.3 points in February to 126.4; the province saw an improvement in the balance of opinion regarding future financial conditions.

The index for the Atlantic provinces was the only one to decline in February, falling by 3.9 points. The weak economic outlook for much of the region likely contributed.

This survey was conducted between February 6-16, 2017.

Staff

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