CanEquity Mortgage Canada
Canadian mortgage rates,
mortgage calculator & news.

Canadian Mortgage News

October 2010 National News Archive


Related Links:
National Archive
2010 Archive
January 2010
February 2010
March 2010
April 2010
May 2010
June 2010
July 2010
August 2010
September 2010
October 2010
November 2010
December 2010

CanEquity Mortgage News RSS 2.0 Feed

CanEquity Mortgage News Atom Feed

About RSS and Atom Feeds

Portable Document Format Printable Version

Canadian economic confidence drops amid uncertainty over economic recovery: RBC Canadian Consumer Outlook Index

Debt management top-of-mind with half of consumers focused on reducing debt

TORONTO, Ontario, October 01, 2010 — Canadian confidence dropped significantly, reflecting concerns over the pace of the global economic recovery, according to the September RBC Canadian Consumer Outlook Index. After hovering around the same mark since December 2009, the overall Index fell 14 points from 108 to 94, driven by declines in all three sub-indexes that comprise the Consumer Outlook Index: current conditions, expectations, and personal investments.

While six-in-ten Canadians (60 per cent) believe the overall economic outlook is good, this is down seven points from last quarter. Job anxiety, at 22 per cent, is up two points from last quarter but still below its high of 27 per cent in November 2009. Looking ahead to the next year, fewer Canadians (46 per cent) now think that the national economy will improve (down nine points from three months ago).

Debt management continues to weigh on the minds of consumers. Half of Canadians (51 per cent) say they are focusing on reducing their debt over the next year or so, while four-in-ten (39 per cent) say they plan on spending less.

"It's good to see people focused on debt management and reduction," said Andrea Bolger, senior vice-president, Personal Financing Products, RBC. "It's important that Canadians feel confident and understand that managing debt is crucial to their financial success."

While most Canadians (78 per cent) indicated they don't undertake an official credit/debt review on a yearly basis, a majority (60 per cent) say they keep close track of their debt. Forty one per cent of Canadians are confident that they are managing their debt well and 17 per cent say they're just keeping their head above water.

"Regularly reviewing your borrowing needs and credit situation while building your assets with the help of an RBC advisor is key to staying on top of your finances and ensuring your goals are being met," added Bolger.

Other national highlights include:

  • Personal Financial Situation (Overall): The percentage of Canadians who think that their personal financial situation will improve in the next three months remains stable at 26 per cent in September, compared to 27 per cent in June. Looking ahead, 39 per cent of Canadians expect their personal economic situation to improve over the next year, lower than the previous measure (42 per cent).
  • Interest Rates: Sixty-six per cent of Canadians think interest rates are going up in the next six months, a significant decrease from the last quarter (84 per cent). Three-in-ten Canadians (28 per cent) expect that interest rates will stay the same over the same period.

"The uncertain and uneven global economic outlook has not gone unnoticed by consumers, translating to heightened anxiety and weaker confidence," said Craig Wright, senior vice-president and chief economist, RBC. "The continued uncertainty and uneven recovery was one of the factors contributing to us downgrading our 2010 forecast, expecting GDP growth of 3.3 per cent, down from 3.6 per cent projected last quarter."

RBC provides advice and tools to help clients manage their debt including the following credit principles:

  • Choose the credit solution that is right for you by aligning your credit choices with your values and your financial circumstances
  • Set goals and use debt wisely to achieve them
  • Manage your debt effectively by determining how much you can realistically afford and stay within your means
  • Make sure you have a repayment plan - manage your debt; don't let it manage you
  • Understand the true cost of your debt - pay high interest rate debt first.

News source: Royal Bank of Canada


Top of page