According to the latest Bloomberg Nanos Canadian Confidence Index (CCI), consumer confidence declined for the third week in a row — a reflection of the ongoing concern about a softening economic outlook. The CCI fell 1 point to a reading of 61.6 last week. This is the lowest level since March of this year. The CCI is down 3.5 points over the past three weeks, and almost five points since hitting a record high in July.
The cause appears to be waning optimism over the strength of the economy, which is being fueled by growing worries about the highly transmissible delta variant and a fourth wave of the Covid-19 pandemic. Weakening confidence is also coinciding with a string of poor economic numbers that suggest the nation is repairing damage from the crisis more slowly than analysts had been anticipating.
The report also notes that the share of Canadians who see the economy strengthening over the next six months fell to 35% last week, down from 54% at the beginning of July. Questions around personal finances and real estate have also shown a declining trend in recent weeks. The good news is that household sentiment is still at high levels. The confidence index is about 10% above its historical average.
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