Update on Consumer Confidence

The RBC Canadian Consumer Outlook Index dropped 14 points in September from 108 to 94, after staying around the same level since December. RBC also conducted surveys on consumer confidence throughout the quarter.

According to the polls, 60 per cent of Canadians believe that the current economic outlook is good, but job anxiety has increased to 22 per cent. However, job anxiety has fallen from its all time high of 27 per cent in November of 2009.

Debt management is a priority for many Canadians currently, with 51 per cent trying to reduce their debt over the next year, and 39 per cent intending to spend less. However, 17 per cent of Canadians say they’re just keeping their heads above water and only 41 per cent of Canadians are confident in their debt management.

“It’s good to see people focused on debt management and reduction”, said senior vice president of Personal Financing Products for RBC Andrea Bolger in a press release. “It’s important that Canadians feel confident and understand that managing debt is crucial to their financial success.” She also added that, “Regularly reviewing your borrowing needs and credit situation while building your assets with the help of an RBC advisor is key to staying on top of your finances and ensuring your goals are being met.”

The senior vice president and chief economist for RBC, Craig Wright said in the same press release that, “The uncertain and uneven global economic outlook has not gone unnoticed by consumers, translating to heightened anxiety and weaker confidence,” he said, “the continued uncertainty and uneven recovery was one of the factors contributing to us downgrading our 2010 forecast, expecting GDP growth of 3.3 per cent, down from 3.6 per cent projected last quarter.”

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