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Economic confidence growing: RBC Canadian Consumer Outlook
Index
Two thirds concerned about rising interest rates
TORONTO, July 2, 2010 — Optimism is on the upswing
across the country with a majority of Canadians (67 per cent)
believing the overall outlook for the economy is good (up
from 54 per cent last quarter) and fewer experiencing job
anxiety (20 per cent, down seven points from its height last
November), according to the June RBC Canadian Consumer
Outlook Index. Looking ahead, 55 per cent of Canadians
believe the national economy will improve over the next 12
months. This is down by two points from March as a result
of four regional decreases slightly bucking the overall trend,
suggesting that some pockets of concern may linger over the
sustainability of the recovery.
The increasing comfort level with the country's economy is
just starting to carry over to the home front with marginal
improvements in a number of areas. Almost four-in-ten Canadians
(37 per cent) indicate they have less money left over after
all their bills are paid compared to three months ago (a decline
of four points from March) and looking ahead to the next three
months, 20 per cent remain concerned that this situation will
worsen. In addition, 34 per cent of Canadians feel their own
ability to save money for things like retirement or education
is slightly better than it was three months ago (down five
points from last quarter).
Two-in-three Canadians (67 per cent) indicate they are concerned
about rising interest rates and 84 per cent expect to see
increases over the next six months (a 15 percentage point
increase from March). Overall, the June RBC Canadian Consumer
Outlook Index remained flat at 108 points from last quarter.
"It's great to see Canadians' confidence in the economy
rebounding and certainly economic forecasts support that trend,"
said Lee Anne Davies, head, Retirement Strategies, RBC. "Increasing
interest rates affect all of us through our savings, investments
and debt. This is an opportunity to review your financial
situation to determine if things have changed and make any
adjustments to ensure you are on track."
Other national highlights include:
- Job Anxiety: There is a slight decline in job anxiety
with one-in-five Canadians (20 per cent) saying that a member
of their household is worried about losing their job or
being laid off, down from 22 per cent in March. Job anxiety
levels decreased across a majority of regions, with the
biggest drop in Atlantic Canada (13 per cent, down 11 percentage
points from March). The only increases were in Manitoba
and Saskatchewan (16 per cent, up five percentage points)
and Ontario (22 per cent, up two percentage points).
- Personal Financial Situation (Overall): The percentage
of Canadians who think that their personal financial situation
will improve in the next three months has dropped to 27
per cent in June, compared to 33 per cent in March. Looking
ahead, 42 per cent of Canadians expect their personal economic
situation to improve over the next year, slightly lower
than the previous measure (44 per cent).
With increases in consumer, housing and government spending,
Canada's economy is on track for solid GDP growth of 3.6 per
cent in 2010," said Paul Ferley, assistant chief economist,
RBC. "Looking ahead, continued strong domestic demand
and positive signs in the job market indicate that the recovery
will continue in the near term."
Whether Canadians want to borrow with confidence, get more
from their everyday banking, protect what's important, save
and invest or take care of their businesses, the RBC Advice
Centre www.rbcadvicecentre.com
can help answer their questions. Advice videos are updated
regularly to reflect current trends and to answer the questions
that are top of mind with Canadians. Interactive tools and
calculators provide customized information covering many facets
of personal finance. With the guidance of RBC advisors who
are available to chat live, Canadians have access to free,
no-obligation professional advice about RBC products and services
and personalized one-on-one service.
About The RBC Canadian Consumer Outlook Index
The RBC Canadian Consumer Outlook Index, benchmarked
as of November 2009, is conducted online via Ipsos Reid's
national I-Say Consumer Panel to 3,229 Canadians (499 British
Columbia, 450 Alberta, 453 Saskatchewan/Manitoba, 827 Ontario,
544 Quebec, 455 Atlantic Canada). 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. Data collection was June
1-8, 2010. 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 ±1.7 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:
Suzanne Willers,
RBC Corporate Communications, (416) 974-2727
Gillian McArdle,
RBC Media Relations, (416) 974-5506
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