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

  • 100 people feared buried in China landslide

    World News CBC News
    A county government in southwestern China says around 100 people from 40 homes are feared buried by a landslide that crashed into their homes. The government of Mao county in Sichuan province says the landslide from a mountain fell onto the village of Xinmo at about 6 a.m. Source
  • Wainwright-based military member charged with child porn offences

    Canada News Toronto Sun
    A Wainwright-based soldier is charged with child pornography related offences after a joint investigation by the province’s Internet Child Exploitation unit and the U.S. Homeland Security Investigations. It’s alleged the man attempted to arrange to meet up with a Texas girl for sex, says a Friday news release from the Alberta Law Enforcement Response Teams. Source
  • Syrian doctor barred from U.S. under travel ban resettles in Toronto

    Canada News CTV News
    A respected Syrian doctor blocked from re-entering the United States to continue his Ivy League education after U.S. President Donald Trump’s travel ban has found a new home in Canada. Khaled Almilaji arrived in Toronto last Friday and was reunited with his wife, Jehan Mouhsen. Source
  • Michigan terror attack planned?

    Canada News Toronto Sun
    The Montreal man accused of trying to kill an airport cop in the U.S. did so on a highly symbolic day for Muslims, TVA reports. The network reports that Wednesday — the day Amor Ftouhi allegedly almost killed the officer at an airport in Flint, Michigan — was Laylat Al-Qadr or “night of fate. Source
  • Hockey hothead, 18, jailed for punching ref

    Canada News Toronto Sun
    Cole Trevor Crane’s hockey horizons have been put on ice. The Dave Schultz wannabe has been jailed for 30 days after pleading guilty to pummeling a referee during a PEI midget AA hockey game on March 26. Source
  • Heavy rains prompt evacuations in Ontario town

    Canada News CTV News
    WATERLOO, Ont. - Heavy rain in the Waterloo, Ont., area has prompted some evacuations and at least one community has declared a state of emergency. The town of Minto, northwest of Kitchener, declared an emergency Friday morning and moved up to 30 families from their homes and closed some roads and streets in the community. Source
  • U.S. senators ask military to clarify role in Yemen torture

    World News CBC News
    Pressure mounted on the U.S. Defence Department Friday after multiple senators called for investigations into reports that U.S. military interrogators worked with forces from the United Arab Emirates who are accused of torturing detainees in Yemen. Source
  • Mulcair unimpressed by Canadian sniper's record kill

    Canada News Toronto Sun
    NDP leader Tom Mulcair is targeting the Liberals after it emerged a Canadian sniper smashed the world record for the longest confirmed kill. The gunman took an ISIS fighter off the board in northern Iraq with a shot that travelled more than 3.5 kilometres to hit its target — more than a kilometre better than the previous top shot. Source
  • Black off-duty St. Louis police officer shot by white officer

    World News CTV News
    St. Louis police say a black off-duty officer who heard a commotion near his home and tried to help fellow officers arrest three black suspects has been shot by a white officer who did not recognize him. Source
  • Footing the bill: Yukon willing to swap free trip for human toes

    Canada News CTV News
    Tourism Yukon has started a strange (but they insist, very real) search for donated human toes. The macabre contest comes after a brown, mummified toe served in a famous cocktail in Dawson City went missing. Source