RBC Canadian Consumer Outlook Index rises as Canadians show cautious optimism
Three-in-four Canadians paying for the holidays with money on hand,
not debt
Currently, Canadians are divided regarding the overall state of the economy: 51 per cent view it as good and 49 per cent view it as bad. Looking ahead, three-in-five Canadians (60 per cent) expect the Canadian economy to improve over the next year, while only 17 per cent expect it to worsen. This optimism was also reflected in a significant drop in the percentage of Canadians who plan to delay major purchases, such as cars, vacations and appliances, due to current economic conditions (47 per cent in December versus 63 per cent in November).
"Canadians are becoming more optimistic but as this index shows, their focus remains on managing day-to-day expenses with many finding it hard to save for their retirement or their children's education," said David McKay, group head, Canadian Banking, RBC. "In 2010, we're continuing to reach out to our 10 million customers with advice that will help them save money, save time and grow their investments."
National highlights include:
- Job Anxiety: One-in-five Canadians (21 per cent) say that a member of their household is worried about losing their job or being laid off, down significantly from one-in-four (27 per cent) last month. With the exception of British Columbia, where job anxiety is unchanged, job anxiety is down across the country, with the lowest levels in Manitoba and Saskatchewan (seven per cent) and Atlantic Canada (10 per cent). - Personal Financial Situation (Overall): The percentage of Canadians who think that their personal financial situation is worse than it was three months ago remains fairly constant (38 per cent in December compared to 39 per cent in November). However, there has been a slight improvement in the percentage of Canadians who think that their personal financial situation will improve in the next three months, which has risen slightly (30 per cent in December compared to 27 per cent in November). Canadians are more optimistic in the longer term, with more than four-in-ten Canadians (43 per cent) expecting their personal economic situation to improve over the next year (compared to 38 per cent in November). - Interest Rates: A majority of Canadians (57 per cent) think interest rates are going up in the next six months, a significant increase from the November poll (52 per cent). Four-in-ten Canadians (38 per cent) expect that interest rates will stay the same over the same period.
"As noted in our recent economic forecast, the Canadian economy is set to grow, with real GDP rising by 2.6 per cent in 2010 and 3.9 per cent in 2011," said
About The RBC Canadian Consumer Outlook Index
The RBC Canadian Consumer Outlook Index, benchmarked as of
For further information: Rina Cortese, RBC Corporate Communications, (416) 974-6970; Gillian McArdle, RBC Media Relations, (647) 400-8464
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