As those in power try to convince us that the economy is “strong”, Canadian consumer confidence has fallen for the second month in a row.
The measurement of consumer confidence in the Bloomberg/Nanos Canadian Confidence Index fell from 59.7 in August to 58.3 in September, and now stands at 57.6 in October.
Additionally, Bloomberg notes that “The sub-index tied to perceptions about the economy and housing had the lowest month-end reading since January.”
A decline in the rate of growth, higher interest rates, and tougher mortgage rules are said to be contributing to the decline in confidence, while many also point out that weak business investment and higher taxes are taking a toll as well.
According to Bloomberg economist Robert Lawrie, “More households are holding a negative outlook on the economy than a positive one. Considering the persistent slack in the labor market and the high level of household debt, the prospect of slower growth might seem more daunting for households with less savings.”
28.2% of those who responded to the Bloomberg/Nanos survey say they think the Canadian economy will get weaker in the upcoming six months. That’s the highest number of people expressing that view since the start of the year.
The report also notes that consumer confidence is particularly low among Canadians on the low end of the income scale.
Declining confidence is not a surprise, as the full weight of Trudeau’s economic policies are starting to be felt. While the government spending billions more will inevitably create what appears to be a boost to GDP numbers (which we saw in previous months), that money isn’t providing any benefit to middle class or working class Canadians.
Meanwhile, higher taxes and higher regulations are slowing down investment and potential growth, while making the burden of debt even worse.
Until those policies change, the foundation of our economy will continue to weaken.