Most people expect real estate, gas and groceries to become more expensive in the next six months.
Most Canadians rate the current economic conditions as good but a significant proportion of people beg to differ, a new Angus Reid Public Opinion poll has found.
In the online survey of a representative national sample of 1,005 Canadian adults, 52 per cent of respondents rate the present economic climate as “good” or “very good”, whereas 45 per cent think conditions are “poor” or “very poor”—only one per cent of Canadians are calling the present situation “very good.”
Since January, the proportion of respondents who deem the economic conditions in Canada as “good” or “very good” increased by four points.
The outlook for personal finances fares better, with 62 per cent of Canadians rating their situation as “good” or “very good”, and 36 per cent rating it negatively (only eight per cent of respondents call their position “very poor”).
Canadians mostly foresee economic conditions to remain unchanged over the course of the next six months (51%), but more than one third (35%) predict an improvement.
Only 14 per cent of respondents across the country think Canada is already out of recession, and just nine per cent predict that the recession will be over by this summer. A fifth of respondents say Canada will overcome recession by the end of the year. Forty-three per cent of respondents say the recession will continue until 2011 or persist beyond that point.
Current Concerns
Fears of unemployment have haunted a third of Canadians over the past couple of months, and 38 per cent of respondents admit that they have worried about the value of their investments. Fewer respondents have recently worried about the safety of their savings (still a significant number, at 29%), being able to pay mortgage or rent (20%), or their employer running into serious financial trouble (20%).
Inflation and Debt
Echoing reports that Canada’s housing market continues to heat up, a majority of respondents (56%) predict that the price of real estate will increase over the next six months. Most Canadians also foresee a hike in the cost of gasoline (82%) and groceries (77%). About three-in-ten respondents (29%) also think cars will become more expensive in the months to come. Conversely, two-in-five Canadians think the price of a television will go down.
Asked what they would do with a hypothetical handout of $1,000, Canadians would allocate $407 to paying down debt, $163 to cover daily expenses such as groceries or transportation, $185 to save in a bank account or GIC, $94 towards a big purchase like a car or home renovation, $76 to personal gifts or treats, $43 to mutual funds, and $33 to invest in individual stocks.
Canada vs. Other Countries
Overall, many Canadians think the national economy compares favourably to that of the United States (75%), the United Kingdom (39%), Japan (30%), and France (30%). However, 32 per cent of respondents think Canada’s economy is doing worse than China’s. Many people say Canada’s current conditions are comparable to those of Australia (31% say they are the same), and Germany (25% say they are the same).
Political Leadership
Canadians place their trust to handle economic matters mostly in Bank of Canada Governor Mark Carney (51%), followed by Prime Minister Stephen Harper (43%), and Official Opposition leader Michael Ignatieff (26%). The governing Conservative Party (35%) is only slightly ahead of the opposition Liberal Party (30%) as the preferred group to rein in national debt. The Tories are also ahead of the Liberals on who is better to control inflation (41% and 26%, respectively), and to end the recession (39% and 24%). Both parties are practically tied on the category of job creation (35% Liberals, 34% Conservatives).
CONTACT:
Hamish Marshall, Research Director, Public Affairs
+604 647 1987
hamish.marshall@angus-reid.com
