According to Bloomberg Nanos, Canadian consumer confidence moved slightly higher over the week ended June 26. This marked the second straight increase. Despite the increase, consumer confidence remains soft on an historical basis, as higher prices and trade uncertainty weigh on consumer optimism. Subdued consumer confidence could weigh on spending and investment decisions, which could hinder overall economic growth.

• The Bloomberg Nanos Canadian Confidence Index rose to 50.9 over the week ended June 26 from 50.4 in the previous week. Based on historical standards, consumer confidence remains at low levels this year.
• Compared to the previous week, more Canadians are worried about their job security. Concerns about the Canadian economy and their personal finances persist.
• Canadians are also growing increasingly concerned about rising inflationary pressures. In May, Canada’s inflation rate increased to 3.2%. Higher prices for gasoline and other energy products are taking a bite out of Canadians’ discretionary spending.
• Last Friday, Bloomberg released its June Canada Economic Summary, which provided economists’ expectations for Canada’s economy this year.
• The survey of economists found Canada’s economy will grow by 0.7% this year and inflation should settle at around 2.6%. The economists expect the Bank of Canada’s benchmark overnight interest rate to be 2.75% by the end of 2027, which would be up from 2.25% right now.

Amid geopolitical and trade tensions, along with surging prices, Canadian consumer confidence has waned in 2026. But the potential end to the war in the Middle East and more clarity towards the Canada-United States-Mexico Agreement may help ease nervousness about Canada’s economy.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.