The Bloomberg Nanos Canadian Confidence Index fell last week suggesting that consumers are still nervous about the economy against the backdrop of lower oil prices. Recent data has also knocked sentiment. The main index was down slightly to 56.61 (from 56.66 a week earlier) while the sub-index on personal finances and job security was down to 59.88 (from 60.40). The sub index on the outlook for the economy and real estate prices fared better with an increase to 53.35 (from 52.93). The report says: “While steps to protect the economy from financial shocks have been put in place, the potential for another crisis episode remains nevertheless, with possible corrections in Canadian regional housing markets, U.S. asset markets, and global imbalances being the lingering causes for concern.”
Pessimism over personal finances is highlighted by the drop in positive responses to those who think their circumstances will be better in 6 months; down to 17.93 per cent from 20.55 per cent a week earlier. Those expecting real estate price increases rose to 37.25 per cent (from 35.97 per cent) however this is only a positive for homeowners and is a negative for first time buyers.
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