Thirty-three percent of B.C. residents say that rising food and gas prices have had a significant impact on their budget, and 32% feel that their personal economic situation has worsened over the last quarter, according to the latest quarterly Royal Bank of Canada (RBC) Canadian Consumer Outlook Index.
“Food and gas prices are impacting folks’ budget,” said Graham MacLachlan, RBC’s regional president for B.C. He added gas prices are expected to stay high at least through the middle of 2011.
“There’s no immediate relief in sight there,” he said.
The report also notes that 53% of respondents indicated they had delayed a major purchase because of the current economic climate.
However, the report also indicates that confidence in the economy is rising in B.C., with 63% of B.C. residents rating the Canadian economy as “good” relative to 61% nationally, and 46% of British Columbians believing the economy will continue to improve over the next year, compared with 42% of all Canadians. The report notes job anxiety in B.C. is dropping, and, at 17%, is one of the lowest in the country
“The western provinces have some of the lowest anxiety in the country,” MacLachlan said.
He added that another positive indicator for B.C. was GDP growth of 2.9% forecast for 2011 and 3.2% forecast for 2012.
The report further notes that B.C. led the country in debt management, with 49% of British Columbians believing they are managing their debt well, compared with 38% of Canadians.
Looking forward, the report notes that 80% of British Columbians expect interest rates to rise this year.
To address this, 31% plan to reduce their interest costs or monthly payments, 28% plan to increase their savings and/or investments and 43% intend to spend less is other areas.