The Ipsos Reid Canadian Economic Confidence Index Nudges Up 1.59 Points To 102.89

Toronto, ON- The latest Ipsos Reid Economic Confidence survey indicates that Canadians remain positive about the current economy and the year ahead. Three in four (73%) Canadians describe the current Canadian economy as "very good" (9%) or "good" (65%) and most think it will either "improve" (22%) or "stay the same" (48%) over the next year. In fact, The Canadian Economic Confidence Index developed by Ipsos Reid, is up 1.59 points to 102.89.

The index functions as a predictor for the Canadian economy. The index is based on six key factors that influence Canadians' expectations about the Canadian economy. These factors are: Expectations that one's own economic situation will improve/worsen; job anxiety; likelihood of purchasing a home in the next six months; expectations of change in interest rates in the next six months; and expectations of spending more/less big-ticket items; and on day-to-day spending.

Low job anxiety continues to fuel the Canadian Economic Confidence Index. A mere 16% of Canadians are worried about either themselves or someone in their household losing their job. Since tracking began in 1990, 16% is the lowest job anxiety recorded (also witnessed in February and April 2003).

Positive home purchasing intentions also continues to give the index a good push. Approximately one in seven (13%) Canadians say they are likely to purchase a home at this time, with 6% who indicate that they are "very likely" (those who say they are "very likely" are expected to follow through more consistently on their intentions).

In addition, the expectation that one's personal economic situation will improve is helping economic confidence at this time. More than one-third (36%) of Canadians believe their personal economic situation will "improve" over the next year or so. In comparison, 16% think it will "get worse" and 46% think it will "stay the same."

Interest rate predictions remain, by far, the most negative factor. Two in three (66%) Canadians think rates will "go up" in the next six months, up from 52% in May 2005. One in four (27%) think they will "remain unchanged," while just 4% think they will go down.

Expectations about big-ticket spending and everyday purchase intentions in the next year also continue to dampen economic confidence, just as they have since August 2002. One in three (32%) Canadians expect to spend less on major purchases than they did last year, while 26% plan to spend more. When it comes to everyday items such as groceries, clothing or other personal goods and services, 36% plan to spend more than last year and 14% expect to spend less.

These are the findings of an Ipsos Reid poll conducted from August 23rd to August 25th, 2005. For the survey, a representative randomly selected sample of 1000 adult Canadians was interviewed by telephone. With a sample of this size, the results are considered accurate to within 1773.1 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2001 Census data.

Please open attached files to view full press release and detailed tables.

For more information on this news release, please contact:
John Wright
Senior Vice-President
Ipsos-Reid
416.324.2900
[email protected]

Ipsos-Reid
Ipsos-Reid is Canada's market intelligence leader and the country's leading provider of public opinion research. With operations in eight cities, Ipsos-Reid employs more than 300 researcher professionals and support staff in Canada. The company has the biggest network of telephone call centres in Canada, as well as the largest pre-recruited household and on-line panels. Ipsos-Reid's Canadian marketing research and public affairs practices are staffed with seasoned research consultants with extensive industry-specific backgrounds, offering the premier suite of research vehicles in Canada--including the Ipsos Trend Report, the leading source of public opinion in the country--all of which provide clients with actionable and relevant information. Ipsos-Reid is an Ipsos company, a leading global survey-based market research group.

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