The Canadian Press

RBC’s Canadian Consumer Outlook Index rose eight percentage points in December, as consumers were less likely to delay major purchases and their job anxiety fell significantly.

The report says most Canadians are exercising financial prudence, with 75% paying for their holiday spending with money on hand instead of incurring debt.

Canadians appear divided regarding the overall state of the economy with 51% viewing it as good and 49% as bad.

Three-in-five Canadians (60%) also expect the economy to improve over the next year, while only 17% expect it to worsen.

This optimism is also reflected in a significant drop in the percentage of Canadians who plan to delay major purchases, such as cars, vacations and appliances, due to current economic conditions — 47% in December compared with 63% in November.

David McKay, the group head of RBC Canadian Banking says while Canadians are becoming more optimistic, the index shows their focus remains on managing day-to-day expenses and many find it hard to save for retirement or their children’s education.