Bloomberg Survey Shows Canadian Consumer Confidence in Decline

Canada’s suddenly jittery economy is facing another headwind: wavering consumer confidence.

Economic sentiment cooled for a second straight month in February, according to polling by Nanos Research Group for Bloomberg News, with Canadians increasingly concerned about the sustainability of the nation’s expansion.

It’s been a dramatic reversal in consumer confidence. Over the past two months, sentiment has dropped from near record highs to below average levels, reflecting an overall deterioration in economic conditions for households. These include three rate hikes by the Bank of Canada since July, a weakening Canadian dollar, sharp declines in stock prices, renewed worries about the housing market and a slowing economy.

usdcad Canadian dollar graph, March 5, 2018

“Household equity holdings have lost 4 percent of their value; new regulations and higher interest rates are likely to have a moderating effect on home values; and the economy appears to be taking a breather after last year’s rapid growth,” said Bloomberg economist Robert Lawrie.

The Bloomberg Nanos Canadian Confidence Index — a composite gauge based on survey questions — was at 57.7 for the week ending March 2. That’s down from 59 at the end of January and 62.2 at the end of 2017, marking its biggest two-month decline in two years. The index has also fallen below year-ago levels for the first time in more than 12 months.

via Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza