Consumer confidence levels in Atlantic Canada have reached record lows, according to Narrative Research.
The company’s Consumer Confidence Index has dropped to 60.4, the lowest in its more than 25-year tracking history.
Down by 13.4 points, it is one of the sharpest declines the market research company has recorded over a three-month period.
Margaret Brigley, CEO of Narrative Research, said these are unprecedented times in our region, with many factors impacting the consumer psyche.
“While we are seeing record low unemployment levels and increasing wages, no one is exempt from the dramatic increase in prices that we have experienced in the past few months, from prices in retail stores, at gas pumps, to housing prices or in the cost of services, along with the supply chain challenges,” Brigley said in a news release.
“This significant decline in consumer confidence is reflective of current inflation. Atlantic Canadians are clearly concerned about their current and future financial wellbeing.”
Consumer confidence is lowest in New Brunswick at 55.7, a drop of 18.5 points over the past three months.
Nova Scotia has the highest level of consumer confidence at 65.8, which is down by 11.1 points over the same period.
Consumer confidence levels stand at 56.3 (down 9.5 points) in Newfoundland and Labrador, and 64.1 (down 16.4 points) in Prince Edward Island.
According to Narrative Research, its Consumer Confidence Index measures consumer attitudes and confidence related to spending and economics.
“It is a highly responsive metric that has shown over time that when consumers are confident, they spend more, which in turn stimulates the economy, and when they are pessimistic, spending declines,” said the release.
“Initially set at 100, this index has proven to be sensitive to national, regional, and international events.”
After hitting a record low in May 2020 due to the pandemic, consumer confidence had started to recover slowly in the region.
However, Narrative Research said it changed course, hitting another record low this past February and continuing the downward trend over the past few months.
