Consumer Confidence Showing Signs of Recovery

Recent reports indicate that consumer confidence is higher than experts may have expected.

A recent article posted on the CNW Group site - one of Canada’s top resources for time-critical news and information, indicated that the Canadian economy may be coming back stronger than originally expected. Articles from the Globe and Mail and CBC News seem to agree.

In the article, Confidence up, Canadians Look to the Future: Survey, CNW indicates that according to the TNS Canadian Facts’ Consumer Confidence Index , Canadians feel good about the economy right now. In fact they report that the Consumer Confidence Index is at 90.5 as of May 5th 2009, compared to 83.7 in March. This is an increase of 8%! The Consumer Confidence Index tracks the attitude of Canadians about the economy each month.

They’re careful to report that this one index does not make a trend, but they do give some comfort during a time when so many Canadian retailers are concerned about the future.

One thing that I found interesting is that three different indices are tracked each month to show confidence in the Canadian economy. What they are, and the results that were posted include:

1. Present Situation Index, which measures the state of the current economic and employment conditions, is up over 3 per cent to 75.3.
2. Expectations Index, which captures consumers’ expectations of the economy, household income and the employment situation in the next six months, is up again to 97.4 from 87.4 the prior month.
3. Buy Index, which tracks how good consumers feel about making major purchases during the current period, has jumped to 103.9, from 95.3. According to the article posted, the last time the Index was this high was in the second quarter of 2005.

According to their stats, these numbers are supposed to be correct within 3 per cent.

So whether or not you’re currently experiencing any sales increases, reading these stats, should give you some confidence that maybe the recession may not last quite as long as some may have feared – I know it makes me feel better!