Canadians’ interest in investments gained slightly in July and held near its seven-year peak, according to a national poll for Manulife Financial.
The Manulife Investor Sentiment Index gained a single point to +31, which is the third straight quarter it has hovered near its highest levels since 2001.
“Canadians remain generally positive about long-term investing,” said Paul Rooney, president and CEO, Manulife Canada, in a release. “The TSX continues near record highs, real estate markets remain active in Canada and the economy remains relatively stable. Interest rates and strength of the Canadian dollar are two factors that haven’t taken much steam from the latest index.”
The June survey of 1,001 Canadians by Maritz Research found five investment categories and vehicles gained ground from the previous poll, while five also lost some ground.
“It’s generally a good sign that for the past two years the overall index has remained above +20 — and for the past three quarters it’s come in above + 30,” Rooney added. “Every change in June also was in the low, single-digit range, which also suggests consumers remain steady in their views.”
Since its launch in 1999, the Manulife Investor Sentiment Index has remained in positive territory overall. It peaked at +35 in early 2000 but fell to a low of +11, in December 2001.
The quarterly index monitors how Canadians say they feel about investing in 10 different categories and vehicles. The index reflects the percentage of those who say they believe it is a good or very good time to invest minus those who feel the opposite.
Among investment categories, investment property showed the strongest gain, up four points. Fixed income was up three, while investing in stocks gained two points and investing in their own home gained a single point from the last quarterly survey. Cash lost ground, falling five points to +11, while balanced funds lost one point to +37.