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Canadians hope for a better 2010, but shelve holiday spending,
according to the new RBC Canadian Consumer Outlook Index
Half of Canadians plan to spend less this holiday season
TORONTO, December 1, 2009 — RBC today established
a new monthly benchmark index - the most comprehensive consumer
index in Canada - describing Canadian consumers' assessment
of the economy and their personal financial situation. The
inaugural RBC Canadian Consumer Outlook report found
that more than three in five Canadians (62 per cent) expect
the Canadian economy to improve over the next year, while
only 14 per cent expect it to worsen. However, people are
not as optimistic in the short term, and are tightening their
belts over the holiday season: one half (47 per cent) plan
to spend less this year than last year and one in five Canadians
(18 per cent) will not buy any gifts at all. On average, Canadians
expect to spend $1,218 on holiday purchases, including gifts,
decorations and entertaining.
"The recent economic times have left many Canadians
feeling uneasy about their financial well-being and this is
reflected in their restraint when it comes to holiday spending,"
said David McKay, group head, Canadian Banking, RBC. "We've
reached out to millions of Canadians this year, and it's clear
that everyone's situation and goals are unique. We're here
to provide advice that's timely and relevant for each one
of our customers."
The index measures Canadians' perception of current conditions
compared to three months ago, as well as short term (three
month) prospects for their personal finances, their job anxiety
and a number of other factors. National highlights include:
- Job Anxiety: One in four Canadians (27 per cent)
said that a member of their household is worried about losing
their job or being laid off. Based on previous polling,
job anxiety has risen to its highest point since March 2009.
As well, there are significant regional differences in job
anxiety, with a third of Albertans (36 per cent) expressing
concern about losing their job or being laid off, compared
to the national average of 27 per cent. Conversely, only
12 per cent of respondents from Manitoba and Saskatchewan
expressed this job anxiety.
- Personal Financial Situation (Overall): Nearly
four in ten Canadians (39 per cent) think that their personal
financial situation is worse than it was three months ago,
but more than one in four Canadians (27 per cent) think
that their personal financial situation will improve in
the next three months. Once again, Canadians are more optimistic
in the longer term, with nearly four in ten Canadians (38
per cent) expecting their personal economic situation to
improve over the next year.
- Interest rates: Canadians are divided on whether
interest rates are going up or staying the same, with a
small majority (52 per cent) expecting interest rates to
rise in the next six months and four in ten Canadians (42
per cent) expecting that interest rates will stay the same
over the same period.
"Recovery is in sight for the world economy," said
Dawn Desjardins, assistant chief economist, RBC. "We're
off to a slow start but the economy will start to build steam
and unemployment will reach its peak early next year and then
fall off."
About The RBC Monthly Canadian Consumer
Outlook Index
The RBC Monthly Canadian Consumer Outlook Index was established
on December 1, 2009, based on the results of an online survey
of 1,018 Canadians, ages 18 and over, conducted between November
9 and 16, 2009. Weighting was then employed to balance demographics
and ensure that the sample's composition reflects that of
the adult population according to Census data and to provide
results intended to approximate the sample universe. A survey
with an unweighted probability sample of this size and a 100
per cent response rate would have an estimated margin of error
of ±3.1 percentage points, 19 times out of 20, of what
the results would have been had the entire population of adults
in Canada been polled.
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For more information, please contact:
Rina Cortese, RBC Corporate Communications, (416) 974-6970
Stephanie Lu, RBC Media Relations, (416) 974-5506
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