Canada CCI Weakens

Canadian consumer confidence index fell to the lowest in more than two months as perceptions about real estate and personal finances worsen. The Bloomberg Nanos Canadian Confidence Index—a weekly survey based on questions about personal finances, job security, the economic outlook and real estate prices—fell to 58.3 at the end of September, the lowest score since mid July. The steady decline in sentiment over the past few weeks partly reflects a normalization from historically high levels as Canada’s economy, which had been running at the hottest pace in decades, begins to cool. It may also reflect the impact of higher interest rates on personal finances, after the Bank of Canada raised borrowing costs twice since July. “Most analysts are calling for the Canadian economic recovery to continue but at a slower pace during the remaining months of the year,” Bloomberg economist Robert Lawrie said in a statement. The loss of confidence is being led by a deterioration in personal finances from historically elevated levels, with 24.6% of respondents sayings theirs have worsened over the past year.