TORONTO, Nov. 24, 2011 /CNW/ - After six months of continuous decline,
Canadians' confidence in the economy ticked up very slightly, rising
less than a point from 95.2 to 96.0.
"This is likely just a statistical blip; certainly not enough to say that
the downward trend in confidence has ended." said Norman Baillie-David, Vice President of TNS Canada and Director of
the marketing and social research firm's monthly tracking study. The good news is that at least this shows that the continuing
uncertainty in Europe and the US is not doing any more major damage to
confidence. In other words, this isn't perhaps the bad news about
confidence that we may have been expecting, but it isn't a good news
story, at least not yet."
The Present Situation Index, which measures how people feel about the economy right now, rose 1.8
points, from 94.5 to 96.3, This indicates that despite continuing
gloomy economic news and uncertain prospects, Canadians are looking
around and saying to themselves: "things may be going crazy everywhere else, but my own situation right
now is still not that bad."
The Expectations Index, which measures people's outlook for the economy six months from now,
rose by 1.5 points from 98.0 to 99.5. "Continuing uncertainty is making Canadians…well…uncertain." There
doesn't seem to be any consistent pattern, showing that Canadians
really don't know what to make of their prospects six months down the
road." added Mr. Baillie-David.
The Buy Index, which measures the extent to which Canadians feel that now is a good
time to purchase a "big ticket item", such as a car or a major
household appliance, bucked the trend of the other indices 93.4 to
92.1, continuing the "up and down" pattern from month to month, and
showing that Canadians can't make up their collective minds as to
whether or not now is a good time to purchase. However, with the
holiday season around the corner, this does not provide much optimism
that consumers will spend big.
The Biggest Holiday Spenders are the ones Cutting Back this Year
In November and December of every year, we add two questions to our
confidence survey regarding Canadians' spending intentions for the
holiday season. This year, Canadians overall are planning to spend
less than last year, continuing a downward trend which began in 2008.
On average, Canadians say they are willing to spend $776 dollars this
year, compared to $812 last year (2010), and $866 in 2009. While most
Canadians say they are likely to spend about the same as last year
(59%), it is the proportion of Canadians who normally intend to spend
the most (at $2,000 or more) which has dropped most significantly,
causing the average overall intended spend to fall. Last year 12% of
Canadians fell into this group, and this has dropped to 9% (which is
actually a 25% decrease in this number).
Consumer Confidence Index tracks Canadians' attitudes about the economy each month and is part of
a global study conducted by TNS in 18 countries. Three indices are
produced each month to show how confidence in the economy is changing: Present Situation Index; an Expectations Index; and a Buy Index. The Canadian fieldwork is conducted using the firm's national
bi-weekly telephone omnibus service, TNS Express Telephone. A total of
1,015 nationally representative Canadian adults were interviewed
between November 14 and November 18, 2011. For a survey sample of this
size, the margin of sampling error is plus or minus 3.1 percentage
points, 19 times out of 20.
TNS Canada (formerly known as TNS Canadian Facts) is the Canadian arm of TNS. TNS advises clients on specific growth strategies around new market
entry, innovation, brand switching and stakeholder management, based on
long-established expertise and market-leading solutions. With a
presence in over 80 countries, TNS has more conversations with the
world's consumers than anyone else and understands individual human
behaviours and attitudes across every cultural, economic and political
region of the world.
TNS is part of Kantar, one of the world's largest insight, information
and consultancy groups.
Kantar is one of the world's largest insight, information and
consultancy groups. By uniting the diverse talents of its 13 specialist
companies, the group aims to become the pre-eminent provider of
compelling and inspirational insights for the global business
community. Its 28,500 employees work across 100 countries and across
the whole spectrum of research and consultancy disciplines, enabling
the group to offer clients business insights at each and every point of
the consumer cycle. The group's services are employed by over half of
the Fortune Top 500 companies.
For further information, please visit us at www.kantar.com
SOURCE TNS Canadian Facts
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