(Bloomberg) — The swift recovery in Canadian consumer confidence over the summer has petered out, weighed down by concern around the economic consequences of a second wave of Covid-19 as cooler weather approaches.
The Bloomberg Nanos Canadian Confidence Index, a composite measure of financial health and economic expectations, was unchanged at 52.7 last week. The stall reflects waning optimism about the economic outlook.
“After a period of improving consumer confidence, the trajectory of the positive trendline is beginning to flatten,” Nik Nanos, chief data scientist at Nanos Research, said in the report. “There could be a slow down in the Covid-19 economic recovery.”
The stall in consumer confidence has been largely predicted by economists who say the fall and winter months will bring a slower recuperation because some social-distancing restrictions will remain amid concern over a second Covid-19 wave.
On Friday, jobs data for August also showed the recovery in the labor market has slowed. So far, Canada’s job market has recouped about two-thirds of the 3 million jobs lost.
Every week, Nanos Research surveys 250 Canadians for their views on personal finances, job security and their outlook for the economy and real estate prices. Bloomberg publishes four-week rolling averages of the 1,000 responses.
Canadians are less optimistic about the outlook for the domestic economy, with the share of respondents expecting an improvement falling to 20.9% from 23% a week earlier. That’s the biggest one week drop since July. Some 48% believe the economy will worsenViews on housing continued their upward trajectory; 41% of respondents say the value of their real estate will increase in the next six months — that’s the highest percentage since mid-March before widespread lockdowns were imposedSentiment around personal finances and job security was little changed after the government said last week it will extend its main income support program, CERB, until the end of SeptemberConfidence in the prairie provinces remains the most depressed at 46.3, the only region to have an index level below 50, meaning views on the economy are net negative. Sentiment in Quebec increased to 56.1, making it the most optimistic province in the country
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