Confidence index posts biggest fall in nearly a year.
Recent gains in consumer confidence have been wiped out, according to the Bloomberg Nanos Canadian Confidence Index.
The index fell to 56.4 in August, a drop of over two points from the 58.6 rating that was recorded in July.
According to Bloomberg, “The drop reflects waning optimism about Canada’s economy, and effectively reverses the pick up in sentiment earlier this summer. It marks the first drop in the index of more than 2 points since November 2018.”
As Bloomberg noted in a graphic, “Confidence decline casts doubt on growth.”
The biggest fall in confidence took place in Ontario.
Prospects for the future of the economy are also dim.
13% expect the Canadian economy to get stronger over the next six months. However, that is dwarfed by the 29% who expect the economy to weaken. The number of those who expect the economy to weaken is up 5 points in just the last month.