According to the TNS Canadian Consumer Confidence Index, last week’s turmoil in the stock markets has shaken Canadian consumers' confidence in the economy.
After a slight drop in July, the index fell almost a full two points in August, 99.7 to 97.6, wiping out any optimism Canadians showed in the economy during the spring and following the federal election.
“Canadians have clearly been spooked by last week’s ups and downs in the stock market. Even in the summer months, when you don't think people are paying much attention to the news or stock markets, these gyrations are having a significant impact on Canadians’ view of the economy, as well as their own prospects,” said Norman Baillie-David, who is vice-president of TNS Canada and was the director of the marketing and social research firm’s monthly tracking study.
The expectations index, which measures people’s outlook for the economy six months from now, shows the greatest impact of the fear caused by market uncertainty.
It plummeted almost six points, from 105.4 to 99.6, its lowest point since July 2009.
“All of a sudden, those market fluctuations we saw last week are having an important ripple effect,” said Baillie-David. “For the first time in a long time, the uncertainty in the markets is causing Canadians to feel their future prospects will be turning towards the worse. Unfortunately when it comes to consumer confidence, the fear is that pessimism often turns out to be a self-fulfilling prophecy.”
Jennifer Harrison
@JHarrisonBIV