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RBC Canadian Consumer Outlook Index dips slightly in January
as job anxiety rises
The older you get, the less you fret about debt
TORONTO, February 1, 2010 — The January RBC
Canadian Consumer Outlook Index dipped two points to 106,
as consumers delayed major purchases, were less positive about
their outlook for the Canadian economy and showed increased
job anxiety. According to the survey, almost six in ten Canadians
(58 per cent) are concerned about their current level of debt.
However, fewer Canadians in the over 55 age group expressed
concern (45 per cent), likely because fewer of them are still
carrying debt.
When asked at what age they expect to be or became debt free,
the average Canadian said 57, with interesting differences
between age groups:
- Canadians aged 18 to 34 indicate that they expect to be
debt free by age 43, on average.
- Those aged 35 to 54 expect to be debt-free by age 59,
on average.
- However, Canadians over age 55 do not expect to be (or
did not become) debt free until age 66, on average.
"Canadians are clearly worried about their current level
of debt," said David McKay, group head, Canadian Banking,
RBC. "We are proactively contacting our clients to provide
customized advice to help them reach their goals, including
helping them become debt-free sooner."
Slightly more than one-in-four Canadians (26 per cent) say
that a member of their household is worried about losing their
job or being laid off, up significantly from one-in-five (21
per cent) in December. Job anxiety is up in every province,
with the highest levels in British Columbia (32 per cent)
and Alberta (31 per cent). The lowest levels of job anxiety
were found in Manitoba and Saskatchewan (19 per cent) and
Atlantic Canada (18 per cent).
Other national highlights include:
- Canadian economy: While Canadians remain divided
regarding the overall state of the economy, the balance
has tipped into negative territory, with 52 per cent describing
it as bad and 48 per cent describing it as good in January.
In December, 51 per cent viewed it as good and 49 per cent
viewed it as bad. Looking ahead, fewer Canadians expect
the Canadian economy to improve over the next year (56 per
cent in January compared to 60 per cent in December), while
the percentage who expect it to get worse remained unchanged
at 17 per cent. This reduction in optimism was also reflected
in a significant increase in the percentage of Canadians
who plan to delay major purchases, such as cars, vacations
and appliances, due to current economic conditions (56 per
cent in January versus 47 per cent in December).
- Personal Financial Situation (Overall): The percentage
of Canadians who think that their personal financial situation
is better than it was three months ago has improved slightly
(21 per cent in January compared to 18 per cent in December).
There has also been a slight improvement in the percentage
of Canadians who think that their personal financial situation
will improve in the next three months, which has risen to
32 per cent in January from 30 per cent in December. Canadians
remain more optimistic in the longer term, with more than
four-in-ten Canadians (45 per cent) expecting their personal
economic situation to improve over the next year (compared
to 43 per cent in December).
- Interest Rates: More Canadians expect interest
rates to go up in the next six months (68 per cent) - up
significantly from the December poll (57 per cent). Fewer
than three-in-ten Canadians (28 per cent) expect that interest
rates will stay the same over the same period.
"While the jobless rate in Canada remained steady at
8.5 per cent in December, 2,600 jobs were lost that month,"
said Craig Wright, senior vice-president and chief economist,
RBC. "Canadians were likely reacting to those numbers
and expressing some insecurity. Nonetheless, over the course
of 2010, we expect to see a sustained improvement in the labour
market."
About The RBC Canadian Consumer
Outlook Index
The RBC Canadian Consumer Outlook Index, benchmarked
as of November 2009, is based on the results of an online
survey of 1,014 Canadians, ages 18 and over, conducted by
Ipsos Reid between January 8 and 14, 2010. This data represents
the most timely and comprehensive snapshot of consumer attitudes
regarding their finances and the economy in Canada. 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
Gillian McArdle,
RBC Media Relations, (647) 400-8464
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