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

  • Saudi Arabia: G-20 gathering of world leaders to be virtual

    World News CTV News
    DUBAI, UNITED ARAB EMIRATES -- Saudi Arabia, which is presiding over the Group of 20 countries this year, said Monday that the upcoming November gathering of world leaders will be held virtually amid the coronavirus pandemic. Source
  • Australian park owner fined $3.4M over 4 river ride deaths

    World News CTV News
    BRISBANE, AUSTRALIA -- An Australian theme park owner was fined 3.6 million Australian dollars (CAD$3.4 million) on Monday for safety breaches that led to the deaths of four people on a river rapids ride in 2016. Source
  • Musicians barred from regular shows get creative during COVID-19

    Canada News CTV News
    TORONTO -- COVID-19 measures have made the world a little quieter, as public health measures limit large-scale performances for bands, choirs and musicians, but some Manitoba musicians are finding ways to keep the music going. At Oak Park High School in Winnipeg, students can’t sing ‘O’ Canada’ in the classroom, but band practice is still going on. Source
  • Organizer arrested after driving car into California protest

    World News CTV News
    LOS ANGELES -- An organizer of a Southern California demonstration against racism was in jail Sunday on suspicion of attempted murder after authorities say she drove through a crowd and struck two counterprotesters. Tatiana Turner, 40, was arrested Saturday in Yorba Linda after speeding from a parking lot when her car was surrounded by shouting counterprotesters. Source
  • New York Times report claims Trump tax avoidance, which he dismisses as 'fake news'

    World News CBC News
    U.S. President Donald Trump paid no federal income taxes in 10 of the past 15 years, according to a report Sunday in The New York Times. Trump, who has fiercely guarded his tax filings and is the only president in modern times not to make them public, paid $750 US in taxes to the federal government the year he was elected, 2016, and $750 US again his first year in office. Source
  • Members fighting sale of MEC say planned COO hire clashes with Canadian company's values

    Canada News CBC News
    Members of Mountain Equipment Co-op (MEC) fighting its takeover by an American investment firm say the hiring of an executive from a U.S. company that makes footwear for the military and police clashes with the company's values. Jay Taylor, who is currently listed as the CEO of LALO Tactical on its web page, is in line to be MEC's president and chief operating officer if the sale goes through to Kingswood Capital Management, the Los Angeles-based firm confirmed to CBC News in an email. Source
  • Sask. reports 15 new COVID-19 cases, cluster among Yorkton students

    Canada News CTV News
    REGINA -- The Saskatchewan government reported 15 new cases of COVID-19, bringing the number of active cases to 144. There is one new case in the north central region, one in the Saskatoon area, eight in the central east zone and four in the Regina area. Source
  • Recall issued on Quebec-made spaghetti sauce that may contain dangerous bacteria

    Canada News CTV News
    MONTREAL -- A spaghetti sauce sold in Quebec has been recalled by food safety officials because it may contain dangerous bacteria. The sauce, sold by Erabliere Godbout may permit the growth of Clostridium botulinum or foodborne botulism, the recall from the Canadian Food Inspection Agency reads. Source
  • One new case of COVID-19 reported Sunday in Newfoundland and Labrador

    Canada News CTV News
    Full coverage at CTVNews.ca/Coronavirus Tracking every case of COVID-19 in Canada Handwashing, distancing and mask-wearing all drastically cut risk of catching COVID-19: research Source
  • Russian dissident Navalny recovering faster than expected

    World News CTV News
    BERLIN -- Russian opposition leader Alexei Navalny is recovering from the suspected assassination attempt last month faster than expected, one of his aides said Sunday. Navalny, who collapsed on a plane from Siberia to Moscow on Aug. Source