BUSINESS – The negative trend in consumer confidence continues in Canada on multiple fronts. The Prairies have hit yet another low in confidence, and positive sentiment on personal finances realized a noticeable one week drop.
This is a contrast to the latest news from China where small business confidence is climbing.
Western Canadian Confidence Drops
“As last fall’s election suggests, we could anticipate an improvement in consumer sentiment if and when a fiscal stimulus becomes apparent. In the meantime, consumers are contending with wage growth that remains substantially below long-term averages and employment prospects that have been deteriorating for the past 12 months”, said Robert Lawrie of Bloomberg Economics.
The BNCCI, a composite of a weekly measure of financial health and economic expectations, registered at 52.07 compared with last week’s 52.31. The twelve month high stands at 58.62.
The Bloomberg Nanos Pocketbook Index is based on survey responses to questions on personal finances and job security. This sub-indice was at 57.95 this week compared to 59.18 the previous week. The Bloomberg Nanos Expectations Index, based on surveys for the outlook for the economy and real estate prices, was at 46.19 this week (compared to 45.45 last week).
The average for the BNCCI since 2008 has been 56.61 with a low of 43.28 in December 2008 and a high of 62.92 in December 2009. The index has averaged 52.79 this year.
