| |
Canadian Budgets Feeling the Bite: RBC Canadian
Consumer Outlook Reports Impact of Rising Food and Gas Prices
Debt and spending levels targeted for 2011
TORONTO, April 12, 2011— Steeper gas and
food prices are significantly impacting Canadians and their
budgets, according to 45 per cent of the Canadians surveyed
by the quarterly RBC
Canadian Consumer Outlook Index (RBC CCO). These rising
costs were registering highest among those living in Ontario
(51 per cent), Atlantic Canada (49 per cent) and Quebec (48
per cent).
As an overall financial focus for the year, managing
debt remains top of mind for consumers across the country,
with 39 per cent planning to pay off their debt as much as
possible, 30 per cent focused on spending less, 23 per cent
looking to save or invest more and 25 per cent saying they
intend to do all of these.
"Being able to save depends on effectively handling
your expenses, so it's good to see Canadians are focused on
managing their debt, expenses and savings," said Dave
McKay, group head, Canadian Banking. "We're focused on
helping every client find the right balance between taking
on debt and growing their savings, based on their needs today
and in the future."
The quarterly RBC CCO takes the pulse of Canadians on a
number of topics, including consumer outlook for three
key indices: national economy, personal financial situation
and job anxiety. Over the next year and compared to the last
quarter, 42 per cent of respondents feel the Canadian economy
will improve (down one per cent); 39 per cent feel their
own personal financial situation will improve (up one per
cent); and 22 per cent are worried about job loss or being
laid off (up two per cent).
Countering concerns about employment, the most recent Economic
Outlook issued by RBC Economics in March 2011 forecast
that labour market conditions will remain firm throughout
the year. This report also noted that disposable income is
expected to post a 4.1 per cent gain across the country.
"The gain in disposable income, alongside an improving
labour market, will provide continued support to consumer
spending and will lead to an eventual levelling out in consumer
debt relative to income," said Craig Wright, senior vice-president
and chief economist, RBC. "Debt levels are expected to
increase more slowly, given a moderation in the housing sector,
rising interest rates and efforts by consumers to rein in
debt burdens."
The RBC CCO is Canada's most
comprehensive consumer assessment of the economy, personal
financial situation and economic and purchasing expectations.
Other highlights from the RBC CCO include:
- RBC Canadian Consumer Outlook Index: Overall, the
RBC CCO Index has risen to 96 points from 93 in January
2011.
- National Economic Outlook: While 42 per cent of
Canadians feel the economy will improve over the next year,
this sentiment is even stronger in several regions, including
Alberta (50 per cent), B.C. (46 per cent), Saskatchewan/Manitoba
(45 per cent) and Ontario (44 per cent). As for the current
state of the economy, 61 per cent of Canadians describe
it as "good", compared to 75 per cent of Prairie
residents in Saskatchewan/Manitoba, 69 per cent of Albertans,
and 63 per cent of residents of B.C.
- Personal Financial Situation Outlook: The number
of Canadians who generally feel that their personal financial
situation will improve over the next year increased by one
percentage point to 39 per cent since January 2010. This
view is held most strongly in Alberta (45 per cent), Quebec
(43 per cent) and Saskatchewan/Manitoba (40 per cent).
- Job Anxiety Outlook: Nationally, job anxiety has
increased by two percentage points to 22 per cent. At 28
per cent, residents of Ontario are expressing the most concern
about the outlook for job loss or layoffs in the upcoming
year, followed by people living in Quebec and Atlantic Canada
(21 per cent each). Prairie residents in Saskatchewan/Manitoba
are the least anxious about jobs (16 per cent).
Related regional releases and comparative data charts can
be accessed via www.rbc.com/newsroom.
About RBC's debt management and other financial advice
and interactive tools
RBC's myFinanceTracker,
a new online financial management tool, offers all personal
RBC online
banking clients the ability, at no cost, to create a set
budget and track their spending habits. Whether Canadians
want to get more from their day
to day banking, protect what's important, save and invest,
borrow with confidence or take care of their businesses, the
RBC
Advice Centre can help answer their questions. Interactive
tools and calculators provide customized information covering
many facets of personal finance. In addition, online advice
videos are updated regularly to reflect current trends and
to answer the questions that are top of mind with Canadians.
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 banking service.
About the RBC Canadian Consumer Outlook Index
The RBC Canadian Consumer Outlook Index (RBC CCO) is Canada's
most comprehensive consumer assessment of the economy, personal
financial situation and economic and purchasing expectations.
Benchmarked as of November 2009, the RBC CCO is conducted
online via Ipsos Reid's national I-Say Consumer Panel to 3,520 Canadians
(534 British Columbia, 502 Alberta, 482 Saskatchewan/Manitoba,
901 Ontario, 582 Quebec, 519 Atlantic Canada). Weighting is
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 March
11 to 15, 2011. 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 ±1.65 percentage points,
19 times out of 20, of what the results would have been had
the entire population of adults in Canada been polled.
- 30 -
For more information, please contact:
Kathy Bevan, RBC
Corporate Communications,
(416) 974-2727
Seema Sharma,
RBC Corporate Communications,
(416) 974-5606
|
|
