Canadian consumers more confident than European, U.S. counterparts

Julie Fortier, Financial Post

OTTAWA -- Canadian consumers may be more confident than their European or U.S. counterparts, but many say they are more careful now about how they spend, according to a report released Monday by The Boston Consulting Group.

The report, titled The New World Order of Consumption, found that only 18% of Canadians do not think the economy will improve in the next six months, a vast improvement from 52% who thought the same a year ago. Meanwhile, 37% of U.S. residents and 39% of European Union residents do not think the economy will improve in the next six months.
"Canadian consumers believe the worst of the recession is over and are more optimistic than they were a year ago. In fact, they're significantly more confident about the economic future and their jobs than consumers in other Western economies," said Cliff Grevler, a partner in the Toronto office, and leader of the Canadian Consumer Practice.
Nonetheless, Mr. Grevler pointed out, Canadians clearly are not forgetting the lessons of the recession, as 74% of Canadians say they are now spending more time shopping around for better prices. As well, 55% of Canadians still plan to cut spending non-essential items.
"While belt-tightening is lightening up a bit, Canadians have structurally changed the way they spend and consume. It's much more focused on price, and there's much more thought given before expenditures on non-essential items," he said.
The survey, which was conducted online by Research Now in early April 2010, surveyed 1,000 Canadian adults with a household income of $50,000 or more. A similar version of the survey, fielded at the end of December 2008, was conducted in the United States and Europe, providing a basis for comparison.
The results echo an American Express and LoyaltyOne survey released last week that found a "seismic shift" in the way Canadian consumers spend. That poll of 1,000 Air Miles collectors found 62% of respondents said they feel more confident about the economy, and 58% say they see brighter days in their financial future, but 48% say they're nervous about their current fiscal status.
Also, a Bensimon Byrne report last month suggested that in Canada the "culture of thrift and frugality that developed during the recession" will continue, largely due to growing household debt, which is at record-high levels.