Canadian consumer confidence in the second quarter of 2014 was higher than it was one year ago but it continues to drop from the peak levels of the final quarter of 2013.
The Nielsen Consumer Insights - Investors Group Index of Consumer Confidence stood at 80.6 in the second quarter of 2014, marginally ahead of where it stood one year ago when the index was 79.7 but down slightly from the 84.4 recorded in the last quarter of 2013 and 81.2 recorded in the first quarter of 2014.
According to Nielsen Consumer Insights Group Director Doug Anderson; "The Canadian Consumer Confidence is basically holding steady compared to last quarter. However, the relative stability of the Index masks two small, opposing shifts that virtually cancel each other out. Working as a positive influence on the Index score, the level positive sentiment about making major purchases held its ground this quarter while the negative sentiment has decreased by over 4 points. Working as a negative influence on the Index to an almost equal degree, we see declines in the proportions of Canadians who hold positive impressions of the Canadian economic outlook both in the next year and over the longer term."
"Steady levels of consumer confidence bode well," said Gaetan Ruest, Vice-President of Product and Corporate Research at Investors Group. "Canadians appear to be satisfied with what they are seeing from the economy as well as in their personal financial lives. This helps create a positive environment for sound financial decision making in the short and longer term."
In the second quarter of 2014, 15% Canadians said they see good times for the economy in the next 12 months, while another 15% said they see bad times. Comparing these figures to the second quarter of 2013, only 12% saw good times ahead, while 16% saw bad times.
Canadians remain more optimistic about the long-term outlook for the economy with close to half (45%) saying they see good times ahead in the next five years. Conversely, 39% believe the next five years will bring unemployment and recession. A comparison with second quarter of 2013 indicates that the positive sentiment hasn't changed at all while the negative sentiment has dropped by one percentage point during the last year.
Slightly less than a quarter (24%) of Canadians have a positive outlook about their and their family's financial well being in the coming 12 months which is one percentage point higher than the second quarter of 2013.
The positive sentiment that this is a good time to make major purchases remains steady while the negative sentiment dropped by 4 percentage points when compared to the first quarter of 2014.
Less than one in five (17%) say they are better off financially compared to a year ago, while 22% say they are worse off. The second quarter of 2013 had this split as 18% - 20%.
