Canadian consumer confidence has plummeted to a historic low.
The Bloomberg Nanos Canadian Confidence Index, which is based on a telephone survey of households, declined sharply as extensive lockdowns continued to trigger mass layoffs across Canada. The index dropped to 38.7, the lowest level since the poll began in 2008.
Signs have also emerged of troubles in the housing sector, with the survey showing Canadians have abruptly turned pessimistic about real estate. Some 41% of survey respondents now expect home prices to decline, the highest level since the 2008 recession.
A housing correction would compound and deepen what is already looking like one of the sharpest economic contractions since the Great Depression due to the coronavirus pandemic. Not only has the real estate industry been a major contributor to economic growth, but housing has also been major source of wealth for Canadians.
Every week, Nanos Research surveys 250 Canadians for their views on personal finances, job security and their outlook for both the economy and real estate prices. Bloomberg publishes four-week rolling averages of the 1,000 telephone responses.
The latest survey found that four out of five respondents (80%) believe the nation’s economy will get worse over the next six months. Also, the share of Canadians who say their personal finances have worsened over the past year rose to 36.9%, a record. And, concern about job security has spiked, with 22.3% of respondents saying they’re at least somewhat worried about losing work, also a record level of concern.