According to the latest consumer confidence survey conducted by TNS, the Canadian Consumer Confidence Index fell 1.8 points in July, from 96.5 to 94.6, which is its lowest point since July 2010.
Norman Baillie-David, vice-president of TNS in Canada, said, “Canadians seem to have gotten themselves into a summer funk over the economy.
“Canadians are hoping for something positive to emerge eventually, but it’s just doesn't seem to be coming. So we’re starting to see the glass half empty.”
The Present Situation Index, which measures how people feel about the economy right now, also fell 1.4 points in July, from 96.1 to 94.7.
The Expectations Index, which measures people’s outlook for the economy six months from now, also fell by two points, dropping to 97.3 in July from 99.3. This index had already lost 3.5 points in June.
The Buy Index, which measures the extent to which Canadians feel that now is a good time to purchase a “big ticket item” such as a car or a major household appliance, also fell by a full two points from 93.8 to 91.8. According to TNS, this is perhaps the most important of the sub-indices, because consumers making these big purchases will provide real economic stimulus.
“Of the three sub-indices, this drop is the one that causes most concern,” said Baillie-David. “People’s feelings about the economy tend to go up and down based on the previous days’ headlines, but when they decide not to make major purchases as a result, this is bad news for the economy.”
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