Canada CCI Lowest in 2 Years

The sharp deterioration in Canadian household sentiment continued into last week, as escalating trade friction with the US fuels anxiety about the prospects for the economy. The Bloomberg Nanos Canadian Confidence Index ended June at 54.9, the lowest end-of-month score since March 2016. The index is down 6.2% from a year ago, the largest year-over-year decline since September 2015. Every week, Nanos Research asks 250 Canadians for their views on personal finances, job security, the outlook for the economy and where real estate prices are headed. Bloomberg publishes four-week rolling averages of the 1,000 telephone responses. A composite indicator—the Bloomberg Nanos Canadian Confidence Index—is also calculated from the rolling averages of the four questions. The percentage of Canadians giving the most pessimistic responses jumped to 21.6%—the highest since March 2016—versus 18.7% at the end of May and 14.2% at the end of 2017. While all four questions have recorded a deterioration in sentiment over the past month, the biggest drop has been in the outlook for the economy. The share of Canadians who see the economy weakening jumped to 41.3, the highest since January 2016.