Canadian Consumer Outlook Index dipped – People Worried About Money
The RBC Canadian Consumer Outlook Index dipped to 108 points in March from 109 in February, signaling that overall sentiment has barely budged.RBC stats that currently, Canadians are having a mixed view on the overall state of the economy: 51 per cent view it as good and 49 per cent view it as bad.
The index has been edging up and down since its launch in December, reflecting opinions that the country’s economic recovery will be a bumpy one.Also around 60% of canadian people expect that the economy will be improving in next year while 17% feels that it will be bad.
According to RBC
“Canadians are becoming more optimistic but as this index shows, their focus remains on managing day-to-day expenses with many finding it hard to save for their retirement or their children’s education,” said David McKay, group head, Canadian Banking, RBC. “In 2010, we’re continuing to reach out to our 10 million customers with advice that will help them save money, save time and grow their investments.”
Craig Wright, chief economist at Royal Bank of Canada said “There are risks to the outlook that Canadians are still a bit worried about,”
What is Index of Consumer Confidence
The Index of Consumer Confidence, the Conference Board’s survey of Canadian households has been ongoing since 1980. It measures consumers’ levels of optimism regarding current economic conditions. This is a crucial indicator of near-term sales for companies in the consumer products sector. It is constructed from responses to four attitudinal questions posed to a random sample of Canadian households.
The index is then derived using the following calculation for each question:
percentage of positive responses / (percentage of positive responses + percentage of negative response)