Consumer confidence in Canada is on the upswing, but it may not be enough to benefit retailers for this Christmas shopping season.
The Conference Board of Canada's latest survey of households shows overall confidence rose 3.9 points to 83.6, the second monthly uptick and sufficient to wipe out declines during the summer.
But on the question of whether now is a good time to make a large purchase such as a home, car, or major appliance, almost half of respondents said no, and the balance of opinion on the question shifted negatively.
The finding is consistent with a new report by the Bank of Montreal, also released Wednesday, that nearly half of Canadians plan to cut back on holiday spending this year, and 48% expect to spend less than they did two years ago.
The majority of respondents in the BMO survey estimated their holiday spending will peak at $1,300, with more spent on gift purchases than entertaining family and friends.
Only 20% said they planned to spend more than two years ago.
It was the second report in as many weeks that suggested shoppers may be reluctant to splurge this holiday season. Deloitte Canada said last week that 44% of respondents to their poll also planned to spend less than last year.
In the latest consumer confidence survey, which the Conference Board conducted in early November, Canadians said they were more hopeful about their future finances and job prospects.
The balance of opinion on future job opportunities turned positive in November for the first time since July. The survey's margin of error is plus or minus 2.2%.
