Index of Consumer Confidence August 2010

Survey Results
Consumer Confidence Little
Changed in August
C
onsumer confidence was little changed this asked if they felt their financial situation had improved
month, with the index falling 0.6 points to over the past six months, just 14.5 per cent answered
79.4 (2002 = 100). This marks the third con- yes—down 0.9 percentage points from July. Meanwhile,
secutive month that the index has declined, highlighting the share of those who responded negatively fell by an
just how fragile consumers view the current recovery. identical 0.9 points to 22.7 per cent. That means there
There were pockets of positivity. Confidence rose in the are far more consumers who feel their situation has
Western provinces. Unfortunately, the gains there were worsened in recent months than those who feel it
offset by drops in Central and Atlantic Canada. The has improved.
survey of consumer confidence was conducted between
August 5 and August 15. The margin of error is plus or On the other hand, sentiment toward future finances
minus 2.2 per cent. improved. The percentage of respondents who expect
their financial situation to improve over the next six
The balance of opinion on current finances continues months rose 0.4 percentage points to 23.9 per cent.
to highlight the confusion that consumers have been Moreover, the share of respondents who said they
experiencing since the economic recovery began. When expect their financial situation to worsen over the same
period dropped 1.8 points to 15.5 per cent. Thus, the
Index of Consumer Confidence majority of consumers—78.4 per cent—do not expect
(2002 = 100) their finances to degrade going forward, up from
110 74.1 per cent last month.
100
90 Consumer attitudes toward the labour market
80 continue to trend negatively. Only 19.5 per cent of
70
60
respondents expect more jobs in six months time,
50 down 1.2 percentage points from July and marking the
02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 fifth consecutive month of decline on this question.
a n. Jul. an. Jul. an. Jul. an. Jul. an. Jul. an. Jul. an. Jul. an. Jul. an. Jul.
J J J J J J J J J Similarly, the share that said they expect fewer jobs
Source: The Conference Board of Canada. rose 1.7 percentage points to 20.6 per cent. The results

ECONOMIC PERFORMANCE AND TRENDS

 suggest that Canadians are not taking notice of recent
job numbers—the Canadian economy has generated
nearly 300,000 jobs this year.
Responses on the major purchases question dipped
deeper into negative territory. When asked about making
a major purchase right now, 42.8 per cent indicated it
was a good time, up a marginal 0.1 percentage points
from July. Unfortunately, the share of respondents who
said it was a bad time rose more—up 0.8 percentage
points to 46 per cent.
Movements varied by region this month, with gains
concentrated in Western provinces. After two straight
months of steep declines, British Columbia bounced
back to record the month’s largest increase—8.3 points—
which brought the index there to 87.2. The Prairie
provinces posted an increase of 5.5 points, more than off-
setting last month’s decline; and they continue to enjoy
the highest confidence level in the country with an index
value of 99.2. For a second consecutive month, the rest
of the country experienced a drop in confidence. Ontario
fell 3.6 points to 69.1, Quebec was down 1.5 points to
79.4, and Atlantic Canada dropped 2.8 points to 80.7.

The consumer confidence survey has been ongoing since 1960.
It is conducted monthly by The Conference Board of Canada.
The Index of Consumer Confidence is constructed from responses
to four attitudinal questions posed to a random sample of Canadian
households. Those surveyed are asked to give their views about
their households’ current and expected financial positions and the
short-term employment outlook. They are also asked to assess
whether now is a good or a bad time to make a major purchase
such as a house, a car, or other big-ticket items.
The latest results are based on over 2,000 telephone interviews
conducted in early August 2010.

Index of Consumer Confidence Survey Results

by Todd Crawford

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