Consumer confidence climbs in June

Confident Canadians buy more cars. And Canadian consumers continue to show increasing signs of optimism about the economy as we head into the summer months. But continuing high gas prices and the recent stock market means we aren’t out of the woods quite yet. The TNS Consumer Confidence Index nudged up slightly once again in June, from 99.7 to 100.3, which is the highest it has been since April 2010.

“Canadian consumers are continuing to show a strengthening confidence in our economy, with consumer confidence stable or increasing for the fourth straight month. It looks like we’re beginning to feel pretty good about our situation and we’re seriously getting back into a buying mood,” said Norman Baillie-David, Vice President of TNS Canada and director of the marketing and social research firm’s monthly tracking study. “This is a hopeful sign that the economy will be getting even better in the second half of the year.”

The Present Situation Index, which measures how people feel about the economy right now, was also up slightly, from 98.5 (and 98.0 in April) to 100.1.

The Buy Index, which measures the extent to which Canadians’ feel that now is a good time to purchase a “big ticket item”, such as a car or major household appliances, has rebounded nicely after having dropped in May, rising from 92.7 to 95.4. “People are now saying more definitely that they’re in a buying mood, and this is the big change from previous months” added Mr. Baillie-David.
The Expectations Index, which measures people’s outlook for the economy six months from now, is the only sub-index that dropped during the month of June, dropping from 108.3 to 105.4.

“While people feel good about “the now”, they’re still not sure about the immediate future.” continued Mr. Baillie-David. This is likely the impact of continuing high gas prices and the drop in the stock market, both of which the media tend to focus a lot of attention on.”

Consumer Confidence Index tracks Canadians’ attitudes about the economy each month and is part of a global study conducted by TNS in 18 countries. Three indices are produced each month to show how confidence in the economy is changing: Present Situation Index; an Expectations Index; and a Buy Index. The Canadian fieldwork is conducted using the firm’s national bi-weekly telephone omnibus service, TNS Express Telephone. A total of 1,015 nationally representative Canadian adults were interviewed between June 13 and 17, 2011.

For more information visit: www.tnscanada.ca

About Todd Phillips

Todd Phillips is the editorial director of Universus Media Group Inc. and the editor of Canadian auto dealer magazine. Todd can be reached at tphillips@universusmedia.com.

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