Consumer Confidence Increases

The easing of lockdown restrictions in Canada is propelling a surge in consumer confidence levels. The Bloomberg Nanos ‘Canadian Confidence Index’ jumped last week to the highest since October 2019 after the country’s two largest provinces – Ontario and Quebec – began to unwind containment measures. The easing of restrictions, combined with an ongoing vaccine rollout and hot housing and stock markets, are keeping sentiment elevated despite concerns around COVID-19 variants and their spread. The complete bounce-back in confidence highlights how Canadian households have emerged from the deep economic crisis largely intact. That’s stoking expectations consumers will drive the recovery in coming months. The index had plunged by a record one third in March and April, before beginning its climb back over the summer. Now, nearly 28 per cent of Canadians think the economy will be stronger in the next six months, the highest share in three years.