While Canadian consumer sentiment remained weak during the first quarter of 2009, it was significantly more positive than the sentiment of consumers in the U.S. and Europe, according to figure released Monday by Boston Consulting Group.

In fact, during the first quarter, far fewer Canadians said they anticipated spending cuts over the next year than did residents of the U.S. and E.U. That represents a shift from the fourth quarter of last year, when Canadians anticipated more dramatic spending cuts and behavior shifts than did consumers in the U.S.

These are among the findings of the first-quarter 2009 update of The Boston Consulting Group’s (BCG’s) report, “The State of the Canadian Consumer,” based on a global survey of consumers.

“Within the context of a deep, global recession, Canadians are faring significantly better than most consumers in both the developed and the developing world,” says Cliff Grevler, a partner at BCG and head of the Canadian consumer goods and retail practice here. “Overall, Canadians are less anxious, have higher spending intentions, and are more optimistic about the timing of a recovery. That said, the picture in Canada isn’t especially rosy; it’s just not as bleak as it is elsewhere.”

While 53% of Canadians said during the first quarter that they planned spending cutbacks over the next 12 months, 73% of U.S. residents expressed that intention, as did 63% of E.U. residents.

While 81% of U.S. residents and 72% of E.U. residents said during the first quarter that they are cutting spending on nonessential items, only 57% of Canadians reported that behavior. Similarly, 82% of U.S. residents and 74% of E.U. residents said they are deferring major expenses that can wait; only 64% of Canadians said the same.

Not quite half (46%) of Canadians reported being “anxious about the future,” compared with 63% of U.S. residents and E.U. 60% residents.

Thie survey on Canadian consumers’ sentiment and spending behavior in the downturn was conducted online from March 11 through 20. The survey focused on 1,100 Canadian adults aged 18 and older who do the majority of shopping for their household. A larger version of the survey that focused on 13 countries and more than 20,000 consumers was fielded in March 2009.

IE