Consumer confidence in Canada fell for a second consecutive month, as Canadians had a number of things on their mind, including the federal election and their own financial outlooks.
The Conference Board of Canada said Thursday its latest Index of Consumer Confidence dropped 1.5 index points to 117.2 in June.
“Doubt among Canadians grew significantly in June, with an increase in uncertainty indicated in all four components of our survey,” Peter Hall, director of economic forecasting, said in a release. “Concern about the federal election may have played a role. Ontario saw the largest decline in consumer confidence, as the provincial index fell 4.5 points to 115.”
The board said across Canada, consumers were more pessimistic about their financial circumstances. Asked about the health of their current household finances, 76.3% reported their families were at least as well off in June as they were six months earlier, down almost four percentage points from May.
Canadians also indicated a weakened appetite for big-ticket spending. When asked if the time was right for a major purchase, the share of respondents feeling good about the current spending climate dropped more than three percentage points to 55.9%, while those unsure about making big ticket purchases rose 2.5 points to 11.6%.
There is also growing doubt about the future. The number of respondents uncertain about their future finances rose from 6.4% in May to 9.6% in June. The percentage of respondents unsure about job prospects also rose, hitting an all-time high of 8.9% – up from 6.1% in May.
The board noted that while consumer confidence dropped in the past two months, the index is still at a high level and the Board’s outlook for consumer spending remains bright. “Moreover, the May and June surveys were conducted during a time of political turbulence and volatile movements in specific consumer prices – both transitory developments,” the board said.
Confidence dips for second month in row
Federal election, personal financial outlook are worries, Conference Board says
- By: IE Staff
- July 15, 2004 July 15, 2004
- 09:14