Consumer Confidence Hits 2-Year Low
CBJ – According to a poll by Nanos Research, it doesn’t appear as if Canadians are taking much comfort from the Bank of Canada’s efforts to stimulate the economy by shaving the overnight trendsetting rate by another 25 basis points, to a miniscule 0.50%.
The poll reveals that consumer confidence fell to its lowest in more than two years as the economy struggles with a downturn that prompted Governor Stephen Poloz to lower interest rates this month.
The index plunged almost 3 points after Poloz cut the central bank’s key interest rate on July 15, the second downward move this year. It also reduced 2015 GDP forecasts by almost half, blaming the weakness on damage from an oil-price shock and the lack of a rebound in non-energy exports.
The survey, based on phone interviews with 1,000 people, uses a four-week rolling average of 250 respondents. The results are said to be accurate to within 3 percentage points, 19 times out of 20.