The latest iteration of Bensimon Byrne’s ongoing Consumeroloy Report suggests it’s going to be a blue Christmas for retailers.
The online survey of 1,500 Canadians, conducted by the Gandalf Group between Sept. 26 and Oct. 3, found that Canadian consumers are increasingly pessimistic about Canada’s economic future. Half have debt that exceeds savings, and many plan on curtailing spending–particularly on things such as out-of-home dining and gift giving.
Among the study’s findings:
• 59% of Canadians feel the Canadian economy is in a period of growth, down from 73% in July
• While 62% of respondents believe that Canada’s economy will be a little stronger a year from now, that is a marked decline from 71% in a July survey; 26% believe the economy will be a little weaker, up from 19% in July
• 76% of respondents agreed with the statement “The economy in my region could be in trouble.” The uncertainty is most evident in Atlantic Canada (where 37% of respondents strongly agreed with the statement) and B.C. (35%)
• Half of Canadians say they have more debt (not including mortgage) than they do savings (not including home equity)
• Only 42% of people feel their financial situation is “a little better” than it was a year ago, down from 48% in September 2010, while 11% of respondents feel it is “much worse”
• 66% of respondents either strongly or somewhat agree with the statement “This is a good time to be investing money,” down from 73% in the July survey. In addition, 22% of people strongly disagree with the statement, up from 14% in July
• 52% of respondents strongly agreed with the statement “This is a good time to be saving money,” while 33% of respondents somewhat agreed
• 52% of respondents plan to spend the same as they did last year on holiday gifts, while 20% plan to spend somewhat less and 10% plan to spend much less
Bensimon Bryne president Jack Bensimon said in four years of tracking consumer expectations relating to the economy, how Canadians feel about their current financial situation compared to the previous year has proven one of the most reliable methods for predicting consumer spending.
“With the number of Canadians feeling poorer than a year ago at 50% and rising, we expect to see a correlating decline in consumer spending,” he said.
