Canadian Consumer Confidence Drops to Near-Record Lows

According to the Bloomberg Nanos Canadian Confidence Index (BBCCI) released on Monday (10-3-22), Canadian consumer confidence has dropped to near-record lows again amid growing concerns about the global economy.

The BBCCI, a measure of sentiment based on weekly polling, declined for a fifth straight week to some of the weakest levels ever outside of the last two economic crises. Canadians, according to the BBCCI, are rarely so pessimistic about the economy, and the index dates back to 2008. Almost half of Canadians are anticipating that the economy will weaken over the next few months, while only 14% expect that it will improve.

The slide in the BBCCI has just about completely eliminated a small rebound in sentiment in August and suggests that households are crumpling under the weight of rising consumer price, higher interest rates, a housing correction, plunging stock markets, and increased talk of a recession.

This in turn has created doubts on whether the Canadian consumer spending will be able to continue to push the nation’s economic expansion.