Canadians have lost confidence that the national economy or their personal financial situation will improve any time soon, according to the RBC Canadian Consumer Outlook Index, released Thursday.
The online poll was conducted using Ipsos Reid’s national I-Say Consumer Panel from January 9 to 16, via 4,479 Canadians.
Just 32% of respondents indicate they feel positive about the outlook for the domestic economy over the next year, down from 43% in January 2011 and from 56% who said so in January 2010. Only 36% say they believe their own personal financial situation will improve, compared to 38% in 2011 and 45% in 2010.
The survey also reports that, while Canadians, on average, have reduced their personal (non-mortgage) debt, 57% of respondents don’t have any savings set aside for an emergency/rainy day, unchanged since the last quarter. Personal debt is now down to $11,729 compared to $13,020 last quarter. In addition, when it comes to their personal finances, 46% feel they are “standing still” rather than getting ahead, compared to last year.
Consumers are taking action about the state of their personal finances. Over the next year, 31% of respondents intend to focus on reducing debt and spending less, 22% plan to save or invest more, and 23% intend to take all of these actions.
“We’re encouraged to see that Canadians are trying to find ways to manage their finances, which is particularly crucial given the current economic environment,” says Dave McKay, group head, Canadian Banking, RBC. “Reducing debt is a very good goal, but having money set aside for something unforeseen is also important. Sitting down with a financial planner to ensure you balance day-to-day-costs with growing your savings and planning for the unexpected should be part of your complete financial plan.”