Economic fears putting chill on big purchases: CTV/Nanos survey

More than 60 per cent of Canadians are either delaying or outright cancelling big purchases, while a quarter of them are spending less on vacations over concerns about the state of the economy, according to a CTV News/Nanos survey on consumer confidence.

See Full Article

When asked what best describes their situation when it comes to making major purchases like a home or a car:

  • 51 per cent of Canadians said they would delay; while
  • 12 per cent said they would cancel.

Nanos poll

When it comes to their vacations, even in the chill of mid-winter, 25 per cent of Canadians said they would be spending less this year, while 12 per cent would outright cancel their trips because of fears over what they perceive as a weak economy.

Nanos poll

“That represents a significant chill effect on the economy,” Nik Nanos told CTV News in Ottawa. “Because when people stop spending money that’s bad news for everyone right across the board.”

“Retail sales will be down, employment will be down, profitability of companies will be down.”

It doesn’t mean Canadians don’t have the cash on hand to spend, but the fact they’re choosing not to creates an “artificial negative environment,” said Nanos.

“Any kind of decline in consumer spending has an immediate negative impact, not just on the retail sector, but right across the board. And an already fragile situation when it comes to the economy can actually get much worse just because of the negative psychology of consumers.”

Why so pessimistic?

A second CTV News / Nanos survey may shed some light on why so many Canadians are holding on to their cash: the effects of a low dollar.

That vast majority of Canadians feel the low value of the loonie has had a somewhat negative (43 per cent) or a negative (37%) effect on them personally. Meanwhile, only three per cent of Canadians feel the low dollar has had a positive effect. In the Prairies, where people in the hard-hit energy-producing regions are reeling, 51 per cent described the personal impact of the low dollar as negative.

Nanos poll

“So (Canadians are) hoarding and holding on to their cash because they’re concerned about the weakness in the Canadian economy, the weak Canadian dollar, the weak price of a barrel of oil. Roll that all up and what you have is a very negative consumer frame right now,” said Nanos.

Despite all the pessimism, just over half of Canadians are either confident (14 per cent) or somewhat confident (38%) in the ability of the federal government and the Bank of Canada to manage the value of the dollar. Meanwhile, over two-fifths of Canadians are either somewhat not confident (22 per cent) or not confident (21 per cent).

When it comes to government spending, just under half of Canadians (45 per cent) feel the federal government should spend what it promised it would spend during the election campaign, while 21 per cent say they should spend even more. Meanwhile, 28 per cent believe the government should spend less that what it promised.

Nanos poll

In the light of negative consumer spending numbers, Nanos says Prime Minister Justin Trudeau and the Liberal government have a job to do. “I think he has to adjust his message. He still has to still be positive,” said Nanos, “at the same time he has to somehow convey that he understands that people are worried. But that he has a plan.”

Methodology: Both Nanos Research surveys were commissioned by CTV News and were conducted between Jan. 30 and Feb. 1, 2016. It was a random survey of 1,000 Canadians, and is accurate to 3.1 percentage points, plus or minus, 19 times out of 20.



Advertisements

Latest Canada & World News

  • Quebec records 1,166 new cases of COVID-19 on Tuesday, and adds 57 more deaths

    Canada News CTV News
    MONTREAL -- Quebec added 1,166 new cases of COVID-19 on Tuesday, reporting the lowest case count in weeks for the second time in a row. The province also reported 57 new deaths. Among these 57 deaths, four occurred in the last 24 hours, 49 between Jan. Source
  • Ontario records fewer than 1,800 new COVID-19 cases for first time in weeks as testing drops

    Canada News CTV News
    TORONTO -- For the first time since December, Ontario is reporting fewer than 1,800 new cases of COVID-19 as the number of tests performed falls well below provincial lab capacity. The 1,740 infections reported on Tuesday represent a drop from the 1,958 on Monday and are down further from the 2,417 cases logged on Sunday. Source
  • Providence Therapeutics begins first clinical trials of Canadian-made COVID-19 vaccine

    Canada News CTV News
    CALGARY -- Human clinical trials have begun in Toronto for a proposed COVID-19 vaccine by a Canadian company. Providence Therapeutics of Calgary says 60 subjects will be monitored for 13 months, with the first results expected next month. Source
  • Cougar attack: Senior seriously injured, animal euthanized near Whistler, B.C.

    Canada News CTV News
    VANCOUVER -- RCMP shot and killed a cougar on a remote property along a forest service road north of Whistler, B.C., after it attacked and seriously injured a 69-year-old man Monday afternoon. BC Emergency Health Services said paramedics transported the man to hospital in critical condition. Source
  • Dutch police arrest nearly 200 in new curfew riots

    World News CTV News
    THE HAGUE, NETHERLANDS -- Dutch police arrested at least 184 rioters after protests against a coronavirus curfew turned violent for a third night, police said Tuesday, in the worst unrest to hit the Netherlands in four decades. Source
  • Indian court rules that groping without removing clothes is not sexual assault

    World News CTV News
    A court in India has ruled that groping a child through their clothing does not constitute sexual assault, drawing outrage across the country and frustrating campaigners battling to address widespread sexual abuse against women and children. Source
  • Louisiana teen fatally stabbed in apparent grocery store fight with 4 other girls: police

    World News CTV News
    A 15-year-old girl is dead after police say she got into a fight with four other young girls at a grocery store in Calcasieu Parish, Louisiana. The fight took place Saturday around 7:30 p.m. Source
  • Italian PM Conte quits in tactical bid to build new majority

    World News CBC News
    Italian Prime Minister Giuseppe Conte handed in his resignation to the head of state on Tuesday, hoping he would be given an opportunity to put together a new coalition and rebuild his parliamentary majority. The deepening political crisis is playing out against the backdrop of the coronavirus pandemic, which has killed more than 85,000 Italians — the second-highest death toll in Europe (after Britain) and the sixth-highest in the world. Source
  • Suspect in Quebec City Halloween sword attack will appear in court on Tuesday

    Canada News CTV News
    QUEBEC CITY -- The man accused of a sword attack in Quebec City, Carl Girouard, will be back in court on Tuesday, where his psychiatric examination will likely be discussed. In November, defense lawyer Benoit Labrecque said he asked a psychiatrist to assess Girouard's potential non-liability on account of a psychiatric disorder. Source
  • Distrust grows between EU and pharmaceutical companies over COVID-19 vaccine rollout

    World News CBC News
    The latest:Freeland says government considering more pandemic travel restrictions to secure border.Inside Canada's largest COVID-19 outbreak in a federal prison.ANALYSIS | Where the lopsided economic impact of COVID-19 in Canada goes from here.Family homelessness "at crisis levels" in N.W.T. Source