Trump's return to the White House among the concerns as 2025 begins
Canadians are nervous about the impact on the economy of the incoming Trump administration, with a broad pessimism evident in a barometer of consumer sentiment.
The Bloomberg/Nanos Canadian Consumer Confidence Index for the week ended December 30, 2024, shows a decrease in overall positivity from 49.96 in the previous week to 49.08. The average for the year was 53.06, ranging from a high of 56.74 on October 24 to a low of 49.05 on January 5. A reading below 50 indicates negative sentiment.
The four main elements of the two indexes that make up the overall barometer also declined. On personal finances, positive ratings slipped from 16.58 to 14.97; Canadian economy was down slightly from 10.89 to 10.88; job security decreased to 69.07 from 69.61; and real estate was down to 42.92 from 43.47.
The Bloomberg Nanos Pocketbook Index is based on survey responses to questions on personal finances and job security and was at 52.65 this week compared to 54.64 four weeks ago. The Bloomberg Nanos Expectations Index, based on surveys for the outlook for the economy and real estate prices, was at 45.50 this week compared to 49.66 four weeks ago.
“The closing week of 2024 had consumer confidence moving into negative territory for the first time this year,” said chief data scientist Nik Nanos. “Negative sentiment on the future strength of the economy hit a two year high.”
The share of respondents who feel better off was just 14.97% while 48.51% feel worse off and 35.73% reported no change.
Overall sentiment was down in all provinces week-over-week except for British Columbia where there was a slight increase.
By age group, the youngest adults (18-29) and older cohorts (50 and older) reported declining sentiment while those in the middle (30-49) showed improvement. However, by income group it was the lowest (up to $15K) and highest ($60K+) groups that showed greater confidence while it declined for the middle groups ($15-59K).
The index revealed that sentiment weakened among both homeowners and renters.
