Canadian consumers seem to have entered a summer funk, as the TNS Canadian Consumer Confidence Index took a dip in July. The Index fell from 96.5 in June to 94.6 in July, its lowest point in 24 months. The monthly survey measures how confident consumers feel about the economy on a scale from 0 to 100 across three indicators.
The Present Situation Index, which measures respondents' feelings about the economy right now, fell 1.4 points in July to 94.7. The Expectations Index, which measures feelings about the next six months, fell two points to 97.3. And the Buy Index, which measures respondents' feelings about making a major purchase like a car or household appliance, also fell two points in July, to 91.8.
"Of the three sub-indices, this drop is the one that causes the most concern," said Norman Baillie-David, vice-president of TNS in Canada and director of the marketing and social research firm's monthly tracking study, about the Buy Index decline.
"People's feelings about the economy tend to go up and down based on the previous day's headlines, but when they decide not to make major purchases as a result, this is bad news for the economy."