Two in three (67%) Canadians Say Current State of Economy is `Good', up from 54% Last Quarter

Toronto, ON - Two in three (67%) Canadians say the state of the economy is `good' (4% very/63% somewhat), according to the RBC Canadian Consumer Outlook Index conducted by Ipsos Reid. The proportion of Canadians who think so has increased by 13 points since last quarter. Conversely, one in three (33%) still believe the economy is in `bad' (4% very/29% somewhat) shape, down 13 points.

The poll of over 3,000 Canadians also reveals that job anxiety has also been dropping - slowly but steadily - as only two in ten (20%) report that they or someone in their family is worried about being laid off or losing their job, down 2 points from last quarter and from its high-point of 27% last year. Job anxiety is higher than the national average in British Columbia (25%) and Ontario (22%) but lower in Alberta (19%), Quebec (16%), Saskatchewan and Manitoba (16%) and Atlantic Canada (13%).

Looking ahead, 55% of Canadians believe that the national economy will improve over the next year, compared with 19% who believe it will worsen. In the shorter-term, 35% believe the economy will improve in the next three months while just 18% think it will worsen.

Four in ten (42%) believe their personal financial situation will improve in the next year or so while just 18% believe it will worsen. Looking ahead to the next three months, three in ten (27%) think their situation will improve, while just 17% are pessimistic about their own financial future over the next three months.

The national, overall index has held steady at 108 points since last March. While the current conditions sub-index is up 10 points to 126, those gains have been offset by drops in the other sub-indices. Likely a result of concerns over the Greek debt crisis and fears of contagion, the expectations sub-index is down 9 points to 93, and the investments sub-index is down sharply (22 points) to 98 points, likely due to extremely volatile stock markets over the last three months.

The increasing comfort level with the economy is starting to translate into modest improvements in a number of areas. Fewer Canadians now (37%) than last quarter (41%) say they have less money left over after their bills are paid, and only two in ten (20%) think that this situation will continue into the next three months. Further, fewer (34%) now believe their ability to save for retirement or education is getting worse compared to last quarter (39%).

The elephant in the data, so to speak, is with regards to interest rates, as two in three (67%) indicate they are `concerned' (19% very/48% somewhat) about rising interest rates. Moreover, 84% believe interest rates will rise over the next six months, an increase of 15 points since last quarter.

These are some of the findings of the Ipsos Reid RBC Canadian Consumer Outlook Index conducted between June 1-8, 2010, on behalf of RBC. For this survey, a national sample of 3,229 adults from Ipsos' Canadian online panel was interviewed online (499 British Columbia, 450 Alberta, 453 Saskatchewan and Manitoba, 827 Ontario, 544 Quebec, 455 Atlantic Canada). Weighting was then employed to balance demographics and ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/-1.7 percentage points 19 times out of 20 of what the results would have been had the entire population of adults in Canada been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error. The national index is benchmarked to a baseline of 100 assigned in November 2010; the six regional indices are benchmarked to a baseline of 100 in March, 2010.

For more information on this news release, please contact:
Sean Simpson
Senior Research Manager
Ipsos Reid Public Affairs
(416) 572-4474
[email protected]

About Ipsos Reid

Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

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Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2009, Ipsos generated global revenues of e943.7 million ($1.33 billion U.S.). .

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