Survey says Canadian consumer sentiment brightening
Last Updated: Thursday, April 23, 2009 | 10:18 AM ET
CBC News
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Canadians say the worst is over for the economy and see a better next few months, according to a new survey released Thursday.
TNS, a large marketing company, said its monthly tracking of consumer sentiment in Canada popped above the 90 level in April, eight per cent higher than the reading for March.
Better still, the expectations component of the TNS index, in which respondents are asked to look ahead six months, were even stronger with a reading of 97.4. That represented a double-digit gain versus April's gauge of 87.4.
"Clearly, one snapshot does not a trend make. But these results do suggest that despite the troubling economic news dominating headlines, average Canadians are sensing the end is in sight," said Michael Antecol, vice-president of TNS and director of the firm's monthly tracking study.
In addition, the portion of the survey in which consumers assess whether now is a good time to make a major purchase, showed strong gains at 103.9 compared to March. That reading was the highest since the second quarter of 2005, TNS said.
A total of 1,015 Canadian adults were interviewed between April 13 and 16 for the survey. The results are considered accurate within 3.1 percentage points 19 times out of 20.
Individuals in both Canada and the United States have been holding back on major purchases in recent months, concerned that the global economic slowdown could translate into more job losses.
The Conference Board, a New York-based business think-tank, pegged its latest index of consumer confidence at 26, up marginally compared to February. That reading was well below the 50 that the index posted last July, just prior to the start of the economic credit meltdown.
The TNS survey comes on the heels of February's retail sales figures for Canada, which were up 0.2 per cent. The sales increase was the second month in a row in which shoppers spent more, not less, in Canadian stores.
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