Canadian confidence in economy stabilizes at start of new year - BNNBloomberg.ca | Canada News Media
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Canadian confidence in economy stabilizes at start of new year – BNNBloomberg.ca

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Canadian consumer confidence rebounded in December from a two-month slide, as financial markets surged at the end of last year and sentiment around real estate jumped to the strongest since 2017.

The Bloomberg Nanos Canadian Confidence Index, a composite gauge based on weekly telephone polling, ended the year at 56.5, closer to historical averages and up sharply from a November reading of 54.8 that was the lowest in 10 months.

The pick-up in consumer sentiment suggests the nation’s economy will start 2020 on a better footing after a poor showing to end 2019. Canada has posted a string of poor results — including weak retail spending — indicating the economy barely eked out growth beyond one per cent on an annualized basis in the fourth quarter. Yet, most economists expect somewhat better numbers in the first six months of this year, with growth forecast at 1.4 per cent in the first quarter.

Every week, Nanos Research calls 250 Canadians for their views on personal finances, job security and their outlook for both the economy and real estate prices. Bloomberg publishes four-week rolling averages of the 1,000 telephone responses.

More Canadians said their personal finances and job security have improved over the past month. Households are also more confident about the value of real estate, with 45 per cent of Canadians predicting home values will rise. That’s the highest month-end reading for that question since April 2017 and is consistent with a recent rebound in housing markets nationally.

Canadians, however, remain downbeat about the outlook for the economy, with less than 15 per cent of respondents saying the next six months will bring a stronger economy.

Better Start

Even with the slump in confidence in October and November — which coincided with a divisive federal election — the data show Canadians are heading into 2020 more confident than at the start of last year, when the global economy was reeling from financial market turmoil at the end of 2018.

Compared with the start of 2019, there is now more certainty around the ratification of the new North American free trade agreement, a relatively more tranquil political environment in Canada than elsewhere and a stabilization of interest rates, according to Nik Nanos, chairman of Nanos Research.

“2020 looks like it going to start off where there is less to be worried about compared to the beginning of 2019,” Nanos said in a telephone interview. “You roll up all these things and Canadians just feel a little better than at the beginning of 2019.”

The most recent survey results continue to suggest sentiment is divided across the country. Quebeckers lead the charts with the highest confidence, while sentiment in the energy-rich prairies region lags.

Other Highlights

• In the final week of 2019, 18.2 per cent of Canadians said their personal finances had improved over the past year, up from 14.8 per cent at the end of November

• After slumping in November, job security levels picked up in December, with 66.7 per cent of Canadians describing their employment as at least somewhat secure

• While still recording the lowest confidence levels in Canada, households in the prairie provinces posted a small uptick in sentiment last month

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Statistics Canada reports wholesale sales higher in July

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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