Canadians upbeat on finances, economy

Consumer confidence is higher now than it was in November of last year, according to the latest Harris/Decima-Investor’s Group Measure of Consumer Confidence. The upbeat mood also extended to their personal financial wellbeing and their short- and medium-term outlook—personally and for the Canadian economy.

The overall measure of consumer confidence increased from 82.8 last November to 86.2 today. Nineteen percent said they were better off financially compared to a year ago—a 3% hike over the Q4 2010 results—and 21% feel they are worse off, down from 23%.

Canadians are more likely to see good rather than bad times financially for themselves a year from now. In total, 31% believe they will be better off a year from now, up from the 27% recorded in the last wave. Conversely, 13% feel they will be worse off a year from now, essentially unchanged from the 12% recorded in the previous wave.

Twenty-four percent of Canadians see good times ahead for the economy in the next twelve months, a jump from the 19% who said the same in the last wave. Conversely, 14% see bad times over this same period, the same number that was recorded in the last wave.

A majority (54%) believe there will be good times financially for the Canadian economy in the next 5 years, while 31% believe there will be unemployment and recession over this period. This split is similar to the 52%-34% recorded last November.

Just over half (51%) believe now is a good time to make a major purchase. Nationally, 31% believe it is a bad time to make such a purchase. In November, the split was 50%-35%.

According to Harris/Decima senior vice-president Doug Anderson, “The rise in consumer confidence can be attributed in large part due to a rise in confidence about the short term outlook for both the economy overall and for the personal outlook of Canadians. This increased confidence in the one-year outlook suggests that Canadians are becoming more comfortable with the trajectory of the economy and their own personal financial situation.”

Staff

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