Canadians’ sentiments towards housing, economy flagging – poll

Consumer confidence has been labouring under sustained pressure from pandemic-induced uncertainty

Canadians’ sentiments towards housing, economy flagging – poll

With the pace of economic recovery slowing down due to the threat posed by new COVID-19 variants, Canadians’ optimism towards housing and the economy continues to deteriorate, according to a new survey by Bloomberg and Nanos Research.

The latest edition of the Bloomberg-Nanos Consumer Confidence Index registered at 60.94 as of the week ending Sept. 17, compared to 61.15 the week prior and 64.20 four weeks ago. The 12-month high stood at 66.42.

“All measures that comprise the Bloomberg-Nanos Canadian Confidence Index have shown negative pressure over the past four weeks,” said Nik Nanos, chief data scientist at Nanos Research.

Read more: Analyst: Economy’s dependence on housing activity poses grave risks

Positive sentiments towards housing registered at 51.26 versus the 55.01 four weeks prior. Still, when asked about their expectations for home prices in their neighbourhoods in the next six months, more than half of Canadians (51.26%) believe that prices will increase, while 32.27% think that prices will remain about the same. However, nearly 12% believe that prices will drop by then.

Economic sentiment dropped more sharply, from 38.99 a month ago to 31.64 as of Sept. 17. Pessimism was also more evident when it comes to the economy’s prospects in the next half year, with only 31.64% of Canadians expecting a stronger economy, 27.05% bracing for a weaker economy, and 29.55% anticipating economic stagnation.