Consumer Confidence Falls To New Low Amid Economic Pressures

Canadian consumer confidence has fallen to a new low amid rising concerns about the state of the economy.

The Canadian Confidence Index, a weekly poll that measures consumer sentiment, declined for a fifth consecutive week to now sit at its weakest level outside of the 2008-09 financial crisis.

Half of Canadians (50%) now expect the economy will weaken over the next few months, with only 14% anticipating a stronger economy.

The decline in consumer confidence has erased a rebound in sentiment that began in August and suggests that Canadians are feeling the strain of rising consumer prices and higher interest rates.

In the past week, the index fell to 46.5 and is now hovering at its lowest level since the start of the pandemic.

Until this year, the index had only fallen below 50 during the depths of the pandemic in early 2020, and during the 2008-09 financial crisis. It has averaged 56 over the past decade.

Each week, Nanos Research surveys 250 Canadians for their views on personal finances, job security, the economy and real estate prices.