New Lower Rates - Lowest Fixed Rates in Decades/Consumer Confidence Climbing

Hello Everyone,

Last week the banks dropped their rates again to what appears to be an all-time low for fixed rate mortgages. Interesting article from the April edition of Marketing Magazine regarding present consumer confidence in Canada:

Canadian consumer confidence bouncing back: TNS
April 23, 2009 By Kristin Laird

Canadians are feeling feel better about the economic future, with consumer confidence increasing 7% this month, according to the latest results from market research firm TNS.

The firm’s consumer confidence index is up to 90.5 compared to 83.7 in March. Throughout 2007 and into 2008, the confidence index hovered over 100, reaching as high 110.

Numbers are also up in the present situation, expectations, and buy indices—three categories produced each month to show how confidence in the economy is changing.

“Clearly, one snapshot does not a trend make,” said Michael Antecol, vice-president of TNS Canadian Facts and director of the firm’s monthly tracking study. “But these results do suggest that despite the troubling economic news dominating headlines, average Canadians are sensing the end is in sight.”

The present situation index, which captures evaluations of the overall state of the current economic and employment situations, is up just over three points to 75.3. (In late 2007 and into 2008 the present situation index peaked at around 120.)

The expectations index, which measures consumers’ estimation of the economy, household income and employment in the next six months, rose for the fourth consecutive month to 97.4, up 11 points from March.

The TNS buy index, which gauges the degree to which people think the current period is a good time to make major purchases, has increased 9% to 103.9—the highest it’s been since the second quarter of 2005.

“Consumers are saying now is a good time to make that major purchase while at the same time having fairly positive expectations about the future,” said Antecol. “It looks more and more like the ingredients for a consumer-led recovery.”

The TNS Canadian Facts’ Consumer Confidence Index, is based on 1,015 telephone interviews, and has a 3.1% margin of error.

Have a great week!