Confidence in the Economy Plummets

(Nanos Research)

The percentage of Canadians who think the economy will get stronger in 2008 has plummeted an astounding 24 points in 90 days (from 49% in November 2007 to 25% as of last week).

On the personal finance side - there has been a marginal decrease in the percentage of Canadians who think they are better off compared to a year ago (drop from 29% to 24%).

With a perceived downturn in the US economy and volatile markets in Canada, Canadians are basically waiting for the bad economic news even though it hasn’t hit them personally at this time.

Shifting perceptions related to economic confidence may explain the appetite the Conservative government currently has for a federal election.

Canadians were also asked [unprompted] what they would like to see the Government of Canada do to help make the Canadian economy stronger. One in three Canadians were either unsure or thought nothing should be done. The top unprompted response was lower taxes (14%) followed by create jobs/encourage job creation (8%) and invest in key industries (5%). The full list with questions has been posted on the Nanos website as part of the release.

For more detailed information on the methodology and the statistical results visit the Nanos website.

Methodology

Polling was conducted between February 2nd and February 4th, 2008 (Random Telephone Survey of 1,002 Canadians, 18 years of age and older). The aggregate survey results are accurate ±3.1%, 19 times out of 20. Readers should note that the data was weighted for age to match the latest Canadian census results. Results should be considered representative of the Canadian population. Results may not add up to 100% due to rounding.

Results

Question: Thinking of the upcoming year, do you think the Canadian economy will become stronger, weaker or will there be no change?

The numbers in parenthesis denote the change from the previous Nanos Research Survey completed in November, 2007.

Stronger 25% (-24) Weaker 33% (+13) No change 36% (+11) Unsure 6% (NC)

Question: Thinking of your personal finances, are you better off, worse off or has there been no change over the past year?

The numbers in parenthesis denote the change from the previous Nanos Research Survey completed in November, 2007.

Better off 24% (-5) Worse off 16% (NC) No change 58% (+6) Unsure 2% (-1)