Canadian consumers are less optimistic about their economic prospects than they were one year ago, despite signs the recovery is picking up, according to a new survey.
The RBC Canadian Consumer Outlook Index dropped to 93 points in January, down from 106 last year.
The survey found that 43% of us feel the economy will improve in the next 12 months, compared with the 56% who reported so last January. Albertans tend to be the most confident in the overall economy, while Quebecers are the least optimistic.
All of Canada’s major banks agree that the economy will continue to grow in 2011 and beyond. RBC expects gross domestic product growth to come in at 3.2% this year -- the strongest pace in the past four years.
Approximately 60% of Canadians describe the current economy as "good."
When it comes to personal finances, only 38% of Canadians now feel their situation will improve, down from to 45% a year earlier. Again, Albertans are the most content with their personal balance sheets, while this time Ontarians showed the most concern.
Canadians were prudent spenders this past holiday shopping season, RBC found. Sixty-seven per cent said they managed not to overspend with 28% outlining a budget before hitting the malls and sticking to it.
As the economy expands, interest rates will slowly rise, RBC said.
On a positive note, the bank found Canadians are feeling less anxious about employment. This year, 20% of respondents stated they or someone in their household is worried about losing their job, down from 26% last year.
Ipsos Reid polled 3,533 Canadians for the results of this survey between Jan. 4 and Jan 10. A survey with an unweighted probability sample of this size and a 100% 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.
