Consumer confidence mixed

Canadians haven’t fully regained their financial confidence, finds a Harris-Decima consumer confidence index.

That index stood at 81.2 in Q1 2014, up from 77.6 at the same time last year. But it was still down slightly from Q4 2013’s reading of 84.4.

“Canadian consumers [are becoming] confidence in the economy and in their personal outlooks, despite slight increases or decreases in index [readings],” says Gaetan Ruest, vice president of product and corporate research at Investors Group.

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They’re spending and saving more, he notes, and the index says nearly one-in-five (19%) predict economic improvement in the next couple years.

However, only slightly fewer (17%) expect a short-term downturn.

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When asked about Canada’s long-term prospects, almost half of those polled (48%) saw improvement over the next five years. But 38% believe the next five years could bring higher unemployment and a recession.

Regarding personal finances, 26% of those polled expect to be better off financially a year from now, while 14% say they’ll be worse off. In Q4 2013, the same split was 28%-10%.

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Despite that rise in pessimism, about half of Canadians say they’re ready to make a major purchase, with only 34% conceding it’s a bad time—the index found only 18% of those polled say they’re better off financially than in 2013, and 22% admit they’re worse off.

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Staff

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