Consumer’s Confidence Decreases

Premised on an examination by the Nano Research and Bloomberg, consumer confidence had been overly down and the main interlacing effects where associated with real estate. Although on a weekly basis the Canadian Consumer Index (CCI) had been rising, the recent recorded points were 58.50 and a best of 59.44 throughout the whole year. This was still very minimal since it had not even neared the threshold mark of hope, thus, did not measure much significant gains in consumer trust.

Nik Nanos, Chairman of Nanos Research Group, in a statement said, “The latest debilitating retrogression in consumer confidence could be related to the cooling of the real estate prepossession after it had soared high in the month of May.

Despite the economy in Canada being optimal for personal finances alongside steady job security with great mortgage plans, the real estate positive assessments were generally less than that of the customary throughout the country. In a nutshell, consumers were more seen in huge numbers in the British Columbia municipalities and Prairies but were found to be lesser in other areas.

This was occasioned by the steady trade, good realty deals, numerous new listings and affordability availed in these areas. The realtors have never been consistent in their listings due to fear of low availability for recourse to the consumers, therefore, they have always focused on where buyers are converged.

Robert Lawrie, the Economist of Bloomberg, in his statement said, “During a rigorous survey of fluctuating, cooling off, soaring of prices alongside stagnant and / or new listings, our economists have come to certain conclusions and have therefore projected a 2.4% in the annual growth this year. The Bank of Canada re-echoes our stance and in its report, ascertains of an improving position. The Bank also reaffirms that the repercussions of this will be much felt in the households and the labor markets.

J C Loum