The first few days of Donald Trump’s presidency have been characterized by critical developments such as his declaration of intent to renegotiate the North American Free Trade Agreement, a move that has sent uncertainty reverberating through markets north of the border.
In its weakest showing in 8 weeks, the Bloomberg Nanos Canada Confidence Index fell to 56.1 in the week ending January 27. This also marked Trump’s first week as the 45th president of the United States.
“This is a noticeable drop coincidental with the U.S. election and focus on the Trump Administration looking to renegotiate the NAFTA trade pact,” Nanos Research Group chairman Nik Nanos said in the Bloomberg report
Housing pessimism also deepened, with 38.5 per cent expecting higher real estate prices (down from 39 per cent). Meanwhile, 13.8 per cent of respondents are predicting lower prices, slightly up from 13.7 per cent.
The survey, which is considered statistically accurate within 3.1 percentage points (19 times out of 20), found that consumers have become less optimistic about their personal finances and the near-future prospects of the economy. 28.8 per cent of the respondents stated that they were worse off compared to a year ago, up from 27.6 per cent.
Overall, consumer confidence declined every polled region in Canada aside from British Columbia, with the Atlantic region suffering the greatest decrease (down to 56, from 58.9).
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Confidence about Canadian housing at lowest levels since 2009