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Consumers expect home prices to decline: RBC
2010-09-03 | 19:57:34
The faith U.S. consumers have in the housing market has been shattered. According to the monthly RBC Consumer Outlook Index, 40% of U.S. consumers expect the sale prices of homes in their neighbourhoods to decrease over the next year.
Last month, 31% believed that to be true.
Only one-quarter of Americans expect the sale prices of houses in their neighbourhood to increase in the next 12 months, while 59% say they think the construction sector is financially weaker than it was a year ago. Only 14% said it is stronger.
Consumer confidence as measured by the RBC Consumer Outlook Index sank to its lowest level in six months, dropping to 45.9, compared to 63.9 in August.
The plunge in confidence is being driven by falling expectations for the economy and fears about job security. Nearly one-third of Americans are worried about losing their jobs. But Americans though are optimistic about their own financial outlook; 27% feel their personal financial situation will be stronger in six months than it is currently, compared to 21% who feel they will be worse off six months from now.
"As long as Americans are worried about their jobs, consumers' outlooks will remain volatile," said Marc Harris, co-head of global research at RBC Capital Markets. "Despite assurances that the Federal Reserve will intervene if necessary to support the economy, consumers continue to be wary about the direction of the economy and the country more generally. Until they see concrete evidence of a solid, long-term rebound, consumers will likely remain jittery."
- John Powell
(09/02/10)
Filed by , editor@advisor.ca
Originally published on Advisor.ca
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2010-09-03 | 19:54:54
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Canadians & Their Savings Plans
2010-08-30 | 09:50:26
Industry News
Well-known Canadian broadcaster Valerie Pringle will kick-off a two-week, cross-Canada tour starting in Halifax on Monday, August 16th to talk to Canadians about their saving habits, challenges and successes. The tour is part of Pringle’s role as the Saving Ambassador for Scotiabank’s new Let the Saving Begin program, which is designed to encourage Canadians to improve their saving, investing and borrowing habits.
During the tour, Pringle will visit several other cities including Ottawa, Winnipeg, Calgary and Vancouver, with additional cities in the fall. She will speak with Canadians both on the street and in small group settings to better understand their perspectives on saving.
In addition to the tour, Canadians are invited to join the conversation and share their saving stories through the Let the Saving Begin Facebook page (www.letthesavingbegin.com/facebook) where Pringle will be posting daily insights and updates from her tour, including photos and videos.
“Saving is a critical issue for Canadians and it’s important that we start talking about it now to break some of the inertia surrounding it,” said Pringle. “Our financial health is essential to our peace of mind and I hope to gain some insight through my discussions with people across the country. Ultimately, I will present my findings to Scotiabank so they can continue to develop this program.”
Click here to read more from Scotiabank.
Canadian Consumer Confidence
2010-08-30 | 09:48:11
Canadian consumers gained a bit of confidence in both present and future economic conditions in August, according to TNS Canada’s Consumer Confidence Index released Friday.
Overall, the index gained 2.7 points in August, rising to 97.1 from July’s 94.4.
The Expectations Index, which measures consumers’ estimation of the economy, household income and employment in the next six months, reversed a four-month decline, rising 1.6 points from 104.2 to 105.8 in August. The Buy Index, which gauges the degree to which people think the current period is a good time to make major purchases, rose 5.7 points, to 93.4 in August. Even the Present Situation Index, which captures evaluations of the overall state of the current economic and employment situations, ended the month at 93.3 – 1.2 points higher than July’s 92.1.
“As has been the case since the recession took hold, until there is sustained consumer confidence that is translated into dollars spent, we will continue to be on rough waters,” Michael Antecol, Vice President of TNS Canada said in a statement. “I suppose the question now is: how good is that pump – can confidence be kept above the surface or is it still destined to hit the rocks?”
Click here to see the Financial Post article.
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2010-08-30 | 09:29:44
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