Nielsen: Cdn consumer confidence continues to climb

July 20, 2010 – Canadian consumer confidence continues to rise, up two index points since Q1 and besting many nations around the globe, including the United States, according to the latest edition of the Nielsen Global Consumer Confidence Index.

Canadian consumer confidence rose to 102 (100 = average), Canada’s highest index score since the first quarter of 2008.

Other findings:

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Fewer Canadians think the country is in a recession. Fifty-six percent of Canadians think the country is in a recession, compared to 65 percent believing so in Q1.

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However, of those that think the country is in a recession, only 26 percent think the country will be out of the recession in the next 12 months, compared to 37 percent believing so in Q1.

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While about one-third (34 percent) of Canadians plan to spend spare cash on paying off debts, credit cards and loans after covering essential living expenses, this is down from Q1 (40 percent).

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Fewer Canadians will put spare cash into savings (27 percent in Q2 compared to 37 percent in Q1) and retirement funds (10 percent in Q2 compared to 14 percent in Q1).

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Canadians indicate increased spending on holidays (26 percent in Q2 compared to 24 percent in Q1) and out-of-home entertainment (26 percent in Q2 compared to 18 percent in Q1).

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Also on an upward trend: Canadians’ perceptions of local job prospects over the next 12 months and perceptions of it being a good time to buy things they want and need over the next 12 months.

“We’re showing a slow but steady climb out of the economic recession, with Canadian consumers somewhat optimistic in their spending habits,” said Nielsen director of industry insights Carman Allison.

“While the Winter Olympics had Canadians feeling positive, it’s not smooth sailing yet. Canadians indicate debt as a continued concern, as well as increased utility bills, which is not surprising in light of the harmonized sales tax kicking in. The threat of rising interest rates is also likely having some impact on consumer confidence. Given these factors we expect to see some restraint, a new normal, for some time to come.”