Canadians’ interest in investments fell back slightly in late March, after recording its largest leap in more than six years the previous quarter based on national polls for Manulife Financial.
The Manulife Investor Sentiment Index eased four points, after an 11-point gain the previous quarter. At the time, the December poll reflected the largest upswing since the surveys began in 1999 and fell just one point shy of its all-time high of +35, reached in mid-2000.
“Support for investing in general remains very strong and our latest results likely reflect other economic signals,” said Paul Rooney, president and CEO, Manulife Canada, in a news release. “The TSX continues near record highs, real estate markets remain active in Canada and the economy remains very stable. However, uncertainty remains around interest rates and their impact on real estate and equities.”
The latest survey of 1,006 Canadians by Maritz Research found only two investment categories and vehicles gained ground from the previous poll in December, while fixed income investments and Registered Education Savings Plans lost the most favour among those surveyed.
“For the past seven quarters the overall index remained above +20 and that’s generally a good sign,” Rooney added. “Through much of 2004 and into 2005 we were in softer territory, so we were optimistic about the overall economic picture given other recent measures of consumer confidence in Canada.”
“Consumers remain extremely focused on a broad range of long-term investments with most changes in the single-digit range,” Rooney added. “That’s in spite of concerns about real estate markets in the United States and impact from budget measures recently announced here in Canada.”
All six investment categories and four vehicles measured each quarter remained in double-digit positive territory, only the fourth time since the surveys began in 1999.
Among investment categories, investing in stocks gained one percentage point, while investment property gained three points. Investing in fixed income instruments, their own homes and balanced funds showed declines, off 13, six and three points respectively. Cash was off five points from December, but still held at +16.