Consumer confidence reaches two-year high
April 22, 2010 – The latest results from TNS Canadian Facts' Consumer Confidence Index
suggest that Canadians may have turned that proverbial corner when it
comes to their confidence in the Canadian economy.
The latest results from TNS Canadian Facts' Consumer Confidence
Index suggest that Canadians may have turned that proverbial corner
when it comes to their confidence in the Canadian economy. While
concern about making future purchases is still present, they are
feeling a good deal better about the current economic situation.
Overall, the index rose past the 100-point marker for the first time
since April 2008. It ended the month at
100.5 – up 1.1 points from March, 2.9 points from February's 97.6 and
almost four points from January's 96.7.
"Overall, the confidence numbers do seem to be heading up. Looking
back over the recent past, it now seems as though Canadians were
downshifting into the corner but are now keen to accelerate into the
straightaway. But it won't be full-throttle all the way – their
hesitancy remains when it comes to pulling the trigger on those major
purchases," said Dr. Michael Antecol, vice-president of TNS Canadian Facts and director of the marketing research firm's monthly tracking study.
The Present Situation Index, which captures evaluations of the overall
state of the current economic and employment situations, rose to 93.3,
a strong 4.4-point jump since March's 88.9 and a more than 10-point
increase since January's 82.7. Likewise, the Expectations Index, which
measures consumers' estimation of the economy, household income and
employment in the next six months, remains strong. While the index gave
back most of last month's gains, falling 2.2 points from March's
historic high of 111.9, it still closed at a healthy 109.7. In
contrast, the Buy Index, which gauges the degree to which people think
the current period is a good time to make major purchases, continues
its recent trend of bouncing around. After rising in February, it fell
one point in March and almost one point in April. It now stands at
"With overall confidence over that super-important 100-point mark
for the first time in two years and with Canadians feeling good about
today and tomorrow, the last tumbler to fall into place is for
Canadians to feel more strongly about now being the time to make those
big buys. When they do, we may finally see the economic recovery
unlocked," added Dr. Antecol.
Consumer Confidence Index tracks Canadians' attitudes about the economy
each month and is part of a global study conducted by TNS in 18