Image: Unsplash
Atlantic Canadians have never been less interested in spending money.
Narrative Research recorded a record-breaking low in consumer confidence this month, as its longstanding Consumer Confidence Index (CCI) plummeted to its lowest ever level.
Margaret Brigley is the CEO of Narrative Research, the market research agency that puts together the CCI.
She says the index shows we are living in “unprecedented” economic times “with the pandemic affecting all corners of Atlantic Canada.”
In May, the CCI sat at 77.7 points in Atlantic Canada. That’s a drop of 12.8 points since February (when the index was ay 90.5) and down 17.4 points since this time last year.
Prior to Covid-19, the index had never dipped below 82.5 points. That previous low point happened during the Great Recession of 2009.
Narrative Research creates the CCI by calculating the data from people’s answers to five “key economic-related questions.”
The questions gauge how people feel about the economic situation in their province, the economic health of their household, and how likely they are to make a major purchase in the near future.
Ultimately, Brigley says, the CCI shows how likely people are to spend money. And that’s an important thing for Atlantic Canadian businesses to know as they begin to reopen and consider what their business plans should look like.
“It’s such an unprecedented time in our region and in our country. And I think this is really just an important marker that will help us see where consumers are, and when and how quickly they rebound,” Brigley says.
But while the CCI offers insight into the consumer’s current dire views of the economy, Brigley says it’s next to impossible to know when things will start to look better.
“If you say ‘when will our economy will bounce back?’ I don’t think the best economist can give you any kind of prediction,” she says.
“We don’t know if we’re going to experience a second uptick of the virus, if the economy’s going to by opening up and at what speed, what will happen with unemployment levels—there are so many sectors that are vital to this region, like tourism and travel, and those industries are at quite a standstill right now.”
Trevor Nichols is a reporter with Huddle, an Acadia Broadcasting content partner.
