Canadian households are anxious about the economy, despite the parade of above-normal expectations. The Conference Board’s Consumer Confidence Index plunged to a new record low in March. Economists at BMO wrote to investors explaining its no surprise with the trade war compounding cost of living pains. They also don’t see any improvements on the horizon.
Canadian Consumer Confidence Plunges To A Record Low
Canadian households have never felt more uncertain about the economy, a remarkable accomplishment considering recent global events in the past decade. The Consumer Confidence Index fell 8.4 points to 44.2% in March, following a 12-point drop in February. The index is now at the lowest level in its history, and has dropped in 4 out of the past 5 months.
Consumer confidence is less of a read on the economy, and more of a self-fulfilling prophecy. Anxious consumers proceed cautiously— saving more and pursuing fewer risks, like starting a business or making big investments. As a result, the recent positive economic data reported is overshadowed by households inducing a slowdown, amplifying headwinds. Policymakers that can keep consumers calm and stable are underappreciated, aren’t they?
Canadians Have Economic Anxiety Due To Trade War, Cost of Living
Consumer sentiment saw a brief improvement last year, but that faded towards the end of 2024. In general, households have been trying to gain their footing after a sudden cost of living shock and rising rates. Those difficulties ramped up with the new American administration declaring a trade war, bringing more uncertainty to the country’s economic outlook.
BMO senior economist Priscilla Thiagamoorthy wrote to investors, warning that household uncertainty is becoming a prominent threat.
“Canadian consumers are feeling very downbeat these days. And, it’s no wonder, given a brewing trade war with the U.S., stirring price pressures, an upcoming federal election and policy uncertainty,” said Thiagamoorthy.
Despite surprisingly robust economic data, with revisions making the data even better—the bank doesn’t see the uncertainty resolving anytime soon.
“With sentiment now pummeling to new depths, consumers are likely to stay cautious for some time,” explains the bank.
I thought we were all doing elbows up? Was that just to cover how nervous we all feel?
We can be nervous and still have our elbows up!
The best hockey players get nervous before they play their best.
Actors will tell you that they get nervous before getting on stage.
I would say we are preparing ourselves to perform to the best of our own abilities, how ever small our part may be, it all adds up.
So yes – ELBOWS UP!
America is a problem, but the problem with a bunch of retirees now spending their time on X and Facebook to say “we don’t need America,” is a very large percentage of our economy is based on supplying them with services.
Our car manufacturing, most of our tech, our military, etc… that’s a lot of points of GDP and employment that can be wiped out by embracing this narrative that we don’t need America, and it’s just as toxic as the US claiming they don’t need Canada.
I think most adults want leadership to resolve the issue as quickly as possible. All of use that have worked real jobs have had to deal with a jerk at work.
It doesn’t mean the company is a problem nor does it mean you endorse them if you just do your job. People are pretending they don’t watch US tv, or need anything from the US, but the second they log off of facebook they sure as heck aren’t promoting a world-order led by China.
While it is true that we do 800B with the USA, it is more imperative that Canada create its own New Deal. A FDR style of New Deal will lead to Canada not relying on the US as much. There are also many other parts of the world that want what we have.
The USA is 100% the problem in the world today, we have all known that they are a villainous country for decades, forcing and coercing other countries because everyone feared reprisals.
The fact is that they are a bankrupt country in every way, be it morals, money or what not. They are not the global super power they once were. Realistically, both USSR and USA lost the cold war. Both were bankrupt at that point, the difference is that the USA deferred their $ losses for years, which then compunded with more interest…and now? They are on a cliff and about to go off of it. Their true National Debt is actually 200T when you take into account the Social Services.
The other major issue with the US is that they need war for their economy to run – they were born out of war, and have maintained a war of one form or another under each president. The fact that Canada has allowed its economy to be tied so close to the US’s ties us to the same wars. (Albeit we are the deputy who comes in and apologizes for the “sheriff”‘s killings)
So, no we do not need the US, or its horrid economic plans. They are a leach on the world. We need to forge our own path, with innovative government plans (none of which any party has laid out). Canada needs to build its own lead, and stop needing to send raw materials to a US company just so we can buy them back when they are formed. Best example is our raw aluminum gets sent to the US to be formed into cans, which then get sent back to us with a premium added to the price. Why are we sending that down to the US? Why has the government not created a 50/50 company which can change the raw materials into usable items. If the government had a company which it had equal say in with a private partner…it would be a win for both. Canada could use that extra revenue to save taxes, it would create new jobs. etc. FDR did that in the 1930s, which created the USA road system as well as Dams, and forestry services – it created thousands of new jobs.
Canada does not need the US, the US needs Canada – Canada can forge its own path, we just have to choose to do so. The US needs our raw materials because they consume too much of everything, 13x the rest of the world.
Military? We would be better off working with Sweden who makes much better equipment than the US companies – The Gripen is a superior plane to the F-35 in every way. We only went to the F-35 out of fear of US reprisals if we didn’t(see a theme?) . The Swedes also have some of the best naval ships in the world, they have ships that Radar cannot pick up. Once again, the US is not needed. If we just needed to blow things up? Then the US might have the advantage, even then…it would a slim margin compared to EU defense companies.
KISS IT ALL GOOD BYE IN BRITISH COLUMBIA
HOUSING PRICES COLLAPSING PROVINCE WIDE
JUST LIKE 35 YEARS AGO NEW CONSTRUCTION IS WIPED OUT
EVERYTHING ELSE GETS CHEAPER
EVERYTHING CONTINUES FALLING
https://www.nsnews.com/retail-manufacturing/falling-consumer-confidence-rattles-vancouver-small-business-owners-10400017
Oh how I love to see left coast and lower mainland libtard cucks absolutely flame out and destroy themselves over ideology. It’s spectacular but sad they don’t want prosperity.
Cost of living isn’t even an election issue anymore according to the mainstream media. Now it’s just about whining about tariffs and how USA is a big meanie
Just what Chyna and Russia wanted, trade wars in america.They are laughing now, no need for soldiers on the ground