Consumer Economic Confidence Drops

Canadian consumer sentiment fell to its lowest level in more than a year as Russia’s invasion of Ukraine and surging inflation cloud the economic outlook, says the Bloomberg Nanos Canadian Confidence Index. It fell 56.3, the lowest reading since January 2021. For the first time since 2020, the share of Canadians who believe the economy will weaken over the next six months surpassed 50 per cent, suggesting the combination of higher inflation, rising interest rates, and uncertainty surrounding the war is starting to weigh on consumers. Additionally, the surge in oil prices since Russia’s invasion of Ukraine and the beginning of rate hikes from the Bank of Canada are raising worries, resulting in 51 per cent of Canadians expecting the economy to weaken. Also, 39 per cent say their finances have worsened over the past year, which is also the highest since 2020, and 63 per cent expect housing prices to continue marching higher.