After a downward slide over the last three months Canadian Consumer Confidence rebounded significantly in May, as Canadians appear to have shaken off bad economic news on jobs and the slumping housing market.
According to the latest consumer confidence survey conducted by TNS, the Canadian Consumer Confidence Index rose by more than three points, climbing from 94.4 in April to 97.7 in May.
The Expectations Index, which measures people’s outlook for the economy six months from now, is at its highest point since January 2012.
Amid continued uncertainty about where the economy is headed, these results show that there is at least optimism that the situation will improve.
The Present Situation Index, which measures how people feel about the economy right now, rebounded sharply in May, rising more than five full points, from 92.7 to 98.4.
The rebound in confidence is a hopeful sign — although, as the release notes, there’s still lots of uncertainty.
“Canadians’ confidence in the economy continues to be highly variable,” says Norman Baillie-David, senior VP of TNS in Canada and director of the firm’s monthly tracking study.
The Buy Index, which measures the extent to which Canadians feel that now is a good time make big-ticket purchases, remained relatively flat in May.
Baillie-David says, “We continue to heed high consumer debt warnings and avoid spending sprees on big ticket items, but we’re also not cancelling any spending plans either.”