Canadian Consumer Confidence Is Falling, While American Confidence Soars: BMO

Canadian households are facing a third wave, while watching the U.S. get back to normal. Naturally it’s wearing on consumer confidence. BMO economist Priscilla Thiagamoorthy’s latest analysis shows U.S. consumer confidence soared in April. Canada is seeing the exact opposite happen — consumers are growing more pessimistic. The bank says this should subside in the second half of the year, as new infections fall, and vaccines ramp up. 

U.S. Consumer Confidence Is Now Back To Pre-Pandemic Levels

The Conference Board reported U.S. consumer confidence hit the highest point in the past year. The index reached 121.7 points in April, up 12.7 points from a month before. This follows an 18.6 point increase in March as well. The index is now at the highest level since February 2020. 

Thiagamoorthy said, “Americans are increasingly upbeat about the economic recovery, as the vaccine rollout continues to gain momentum and openings resume.” Easy to see, considering the index now stands higher than it was before the outbreak of the pandemic. 

Canadian Consumers Became More Pessimistic About The Economy

North of the border, Canadians are turning more pessimistic during the third wave. BMO notes Consumer confidence fell to 98.4 points in April, down 6.8 points from the month before. The drop is the first in six months though. Things have improved, they’re just seeing a few setbacks.

The economist said, “it’s a different story in Canada… Households here turned more pessimistic as the nation contends with a third wave of COVID and more stringent restrictions.” 

Despite the drop in Canadian sentiment, she does say there’s “light at the end of the tunnel.” Canadian vaccines are ramping up, and a series of lockdowns have slowed the number of new cases. It might seem like it will take forever, but the bank is forecasting strong economic growth in the second half of the year. 

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  • Fazid 3 years ago

    Canada is big on over-promising and under-delivering. From bragging about ordering the most per capita, to begging other countries to give some of their supplies.

  • Trader Jim 3 years ago

    The interesting thing is the Canadian loonie is incredibly strong, and Canada being a commodity country is actually seeing a lot of benefits. The real issue is most people don’t work in those sectors, and only consume from them.

    Improved GDP numbers, without any of the benefits. Shouldn’t be a surprise why the data doesn’t match the sentiment.

    • Bob Walter 3 years ago

      You can also frame it as other countries are more effective at devaluating their currency than Canada in the race to the bottom.

  • Smug Canadians 3 years ago

    We have a Drama teacher as our Prime Minister and a Journalism major as our Finance Minister. What can possibly be the problem???

  • Smug Canadians 3 years ago

    You know, I just joked about that, but the more I thought about it, i realized WTF?????

  • Smug Canadians 3 years ago

    Also, today I approached my financial rep to ask that I reduce my Canadian exposure. I see the storm coming. I’ve been reading about it for a while but I’m now sure, this is it. We are Pooched!! Move your money people!!!!!

    • Jimmy 3 years ago

      The link between the Canadian Stock Market and the economy is not that strong.

      Think gold, fertilizer, minerals, oil.

      We are more linked to the price of natural resources…..

      It is actually difficult to gain exposure to the Canadian economy if you are looking to do that…either long or short…..

  • Smug Canadians 3 years ago

    Oh, and sell that property ASAP. It’s going down. Like 10-12 years down!
    That’s my sincere advise as is went through this in the early 90s. Way worse now though.

  • Holton 3 years ago

    Well, guys everyone around the world is printing tons of money. Inflation is coming, thats why consumer confidence is low. Everyone is expecting inflation and everyone knows real estate is the only way to hedge against inflation. We need to tax people who own multiple properties so young families can get a share of the housing wealth.

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