Canadian consumer confidence fell sharply in the third quarter, due almost exclusively to concerns about the both the short and long term health of the economy. In August, the index stood at 77.5, down from the 83.7 recorded in the last quarter. Despite the decline, one-in-four Canadians feel they will be better off financially a year from now – the same number as three months ago. Meanwhile, in the US, consumer sentiment fell even further, dropping to 55.7.
According to Senior Vice-President Doug Anderson “For the second quarter in a row, Canadian consumer confidence has declined. One thing that is particularly interesting is how the Canadian confidence trend compares to the US trend over the past few years. When US consumer confidence has declined, Canadian confidence has typically declined as well, although usually to a lesser degree and sometimes on a delayed basis. Holding true to this observed trend, it appears that Canadian confidence is currently moving in the same direction as US confidence, but not nearly as dramatic a change.
“Canadians are well advised to take a longer term view at times when the short term picture is clouded by volatility,” said Jack Courtney, Assistant Vice-President of Advanced Financial Planning at Investors Group. “Historically stock markets recover from periods of uncertainty and Canadians should strive to keep their focus on their own long term objectives.”
These data were gathered through teleVox, the company’s national telephone omnibus survey for two weeks from August 18 and August 29, 2011 for just over 2,000 completes. A sample of the same size has a margin of error of 2.2%, 19 times out of 20.