Decreased Canadian Consumer Confidence

February 1, 2010

Decreased confidence by Joshua Hoffman

According to the results of an online survey conducted between January 8 and 14 by the Royal Bank of Canada, Canadian consumer confidence decreased in January 2010. The Canadian Consumer Outlook Index declined by two points, from the December level of 108 to 106 in January.

Almost one half, 45 percent of surveyed Canadians predict that their financial situation will get better in 2010, which is an improvement from December. As for the interest rate, 68 percent of respondents think that it is going to increase in the next half a year. In December, only 57 percent thought so. The percentage of people expecting our economy to improve in 2010 decreased by 4 percentage points to 56 percent in January. 17 percent, the same as in December believe it will worsen.

Many Canadians are quite job anxious, too. 26 percent of respondents stated that there is someone in their household who is afraid of losing their job. That means a 5 percent increase from December. Still, much more, 58 percent of respondents are concerned about their loans.

Not that much change from December. The point of view of Canadians seems to be a little more negative and pessimistic, though. After many news about economic recovery on a good way, it is a little surprising.