Canadians' optimism about their own financial situation rose to the highest in more than a year last week, raising overall consumer confidence, in a sign Prime Minister Justin Trudeau's boost of transfer payments has had an impact.
The Bloomberg Nanos Canadian Confidence Index rose to 59.9 from 59.3 a week earlier, while the pocketbook subindex – measuring personal finances and job security – rose to 61.1 from 60.3 a week earlier. The subindex reached its highest point since May of 2015.
Optimism has increased in particular among those with household incomes under $60,000 ($46,700 U.S.), suggesting Trudeau's increased child benefit payments, which took effect last month, are having an impact, Bloomberg economist Robert Lawrie said.
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"The pattern prior to the oil-shock was for low-income households to have lower expectations than higher-income households. That pattern has since reversed," Lawrie said.
Consumer confidence spiked most in British Columbia, Canada's westernmost province where overall optimism rose to 65.2 from 61.9 a week earlier.
Improving Finances
Nationally, the share of those saying their personal finances have improved over the past year rose to 19.9 per cent, from 18.5 per cent a week earlier. The share of those who said their finances are worse off also increased, to 24.5 from 23.8. The difference between the two – at negative 4.6 percentage points – is the narrowest since June 2015.
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Nationally, 65.5 per cent of respondents said their job was either secure or somewhat secure, up from 64 a week earlier.
The share of those expecting real estate values in their neighborhood to increase over the next six months fell to 43.7 from 44.1 a week earlier, while the share of those expecting the Canadian economy to weaken overall was unchanged.
The Bloomberg Nanos Canadian Confidence Index is based on a four-week rolling average of telephone polling with 1,000 respondents. It's considered accurate within 3.1 percentage points, 19 times out of 20. The latest round of polling ended Aug. 19.