Consumers expect economy to worsen over the next six months
TORONTO, Feb. 13 /CNW/ - While February saw Canadians rebound from a
slightly negative assessment of the present state of the economy, their
outlook for the future continues to decline, suggest the January findings from
TNS Canadian Facts' Consumer Confidence Index.
The Present Situation Index, which captures evaluations of the overall
state of the economy and the employment situation, now stands at 118.7 (up
from 114.7 in January but still below the 122.8 high point recorded last
fall). Confidence bounced back from a drop in January when consumers were
reacting to volatility in equity markets and recessionary talk in the U.S.
"Although consumers in Canada have regained some of their short-term
confidence, the continued decline in expectations for the future continues to
be an area of concern," said Richard Jenkins, vice-president of TNS Canadian
Facts and director of the marketing research firm's monthly tracking study.
The Expectations Index, which measures consumers' estimation of the
economy, household income and employment in six months, declined for the third
consecutive month. The January index value is 97.9 (down from 98.5 in January
and 100.4 in December). Not since the fall of 2005, when Hurricane Katrina
sent economic confidence plunging, has the Expectations Index been this low.
The Buy Index, which gauges the degree to which people think the current
period is a good time to make major purchases, also declined. The index now
sits at 93.0 (down from 94.3 last month).
"With the possibility of an election on the horizon, Canadians have
become much more concerned about the continuation of the prosperity they have
enjoyed over the past several years," added Jenkins.
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 February 4 and 8,
2008. For a survey sample this size, the margin of sampling error is plus or
minus 3.1 percentage points, 19 times out of 20.
TNS Canadian Facts (www.tns-cf.com) is one of Canada's most prestigious
full-service marketing, opinion and social research organizations.
TNS is a global market insight and information group.
We are the world's foremost provider of custom research and analysis,
combining in-depth industry sector understanding with world-class expertise in
the areas of Retail and Shopper Insights, Stakeholder Management, New Product
Development, and Brand and Communications. We are a major supplier of consumer
panel, media intelligence and internet, TV and radio audience measurement
For further information:
For further information: Media Contacts: Richard W. Jenkins, Vice
President, Corporate Director, Public Opinion Research, Tel: (613) 230-4408
x101, e-mail: email@example.com; David Stark, Vice President,
Public Affairs, Tel: (416) 924-5751 x238, e-mail: firstname.lastname@example.org