Consumer Confidence in Canada Shows Signs of Slowing

According to the Bloomberg Nanos Canadian Confidence Index (CCI), Canada’s quick initial rebound in consumer confidence is showing signs of slowing, the most recent indicator to suggest there is a long road ahead for a full economic recovery from the pandemic. The CCI which is a composite that measures the financial health and economic expectations of Canadians, was down slightly to a level of 52.7 last week, from 52.8 a week earlier. This is the first stall in the index since early July, though it remains above 50, indicating that views on the economic backdrop are net positive. The CCI has been trending higher in recent weeks with most provinces lifting even more restrictions on the economy. The housing market has also heated up over the summer, helping to drive gains in the broader index. However, other recent indicators like the pace of job openings suggest the rest of the economic recovery is likely to take a long time while restrictions remain on businesses and social gatherings. Canada’s economy isn’t expected to fully make up the losses until 2022.