Canadian consumers remain much more confident in their economy than their U.S. counterparts and their intention to shop remains much steadier, according to data from The NPD Group.
According to the company’s Economy Tracker, Canadians rank their confidence in the economy at a level of approximately 44 on a scale of zero to 100 (with zero indicating they are very concerned and 100 indicating they are very confident). On the same scale, Canadians ranked their own personal financial situation at approximately 50, indicating they are more concerned with the overall economy rather than their own personal financial situation. A similar scale on retail intentions shows Canadians are as likely to spend less as they are to spend more.
Using the same scale, U.S. consumers’ confidence in the economy dropped slightly from 37.4 to 35.9 since December of last year, while their confidence in personal situation dropped from 39.8 to 37.2. While their intent to spend remains steady at approximately 36, this relatively low score indicates U.S. consumers are more inclined to suggest they plan to spend less. In general, Canadian markers are significantly higher across the board for the three indicators –general economic perception, personal economic perception and retail response — signaling a much higher consumer confidence in Canada.
NPD said the data can be attributed to the lesser impact the global economic downturn has had on the Canadian economy relative to the U.S. The larger gap between the Personal and General Economic Indicators in Canada compared to the U.S. can be attributed to fewer industries/sectors having been directly affected by the recession in Canada and therefore touching fewer Canadian consumers than American, according to the report.
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