- Readings are improving for economic outlook and real estate
- Views on personal finance are still at below-average levels
Canadian consumer confidence extended gains, rising to its highest in 12 weeks, amid an improving outlook for the nation’s economy.
The Bloomberg Nanos Confidence Index, a composite gauge based on household polling, rose to 55.6 for the week ended Oct. 2, the highest reading since July 10. The index had been hovering at about the lowest since 2013 before rebounding.
The gain reflects improving expectations for growth and real estate prices amid evidence the nation’s economic expansion is picking up.
Every week, Nanos Research asks Canadians for their views on personal finances, job security, the outlook for the economy and where real estate prices are headed. The survey, based on phone interviews with 1,000 people, uses a four-week rolling average of 250 respondents. The results are accurate to within 3.1 percentage points, 19 times out of 20.
This is what the latest survey data, which is compiled for Bloomberg News, captured:
*The share of respondents who see the economy strengthening over the next six months rose to 19.6 percent, the highest since January. The share who expect a deteriorating economy declined to 31.1 percent, its lowest since July. The difference between the two -- at 11.5 percentage points -- is the narrowest in more than three months.
*The share of survey respondents who said home prices in their neighborhood will increase in the next six months rose to 36.1 percent, the highest since July. Those who expect weakening home prices fell to 15.2 percent, from as high as 18 percent two weeks ago.
*Job security also seems to be rebounding after recent declines to historically subdued levels. The share of Canadians who say their jobs are at least somewhat secure was at 66.8 percent last week, from a reading of 64.9 percent two weeks ago that was the lowest in more than a year.
*One weak link remains the outlook for personal finances. The share of those who say they’re worse off than they were a year ago, at 27.5 percent, remains elevated compared to the 12-month average reading of 24.5 percent.
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