Canadians’ financial confidence plunges to record-low: Report

Posted by Steve Randall,

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The cost of living is rising, and the added burden is weighing heavily on Canadians’ view of their personal finances.

A new report published today (Jan. 17) shows that confidence in meeting everyday expenses and reducing debt has weakened in the first quarter of 2022 compared to the previous period.

The MNP Consumer Debt Index recorded a reading of 88, its lowest since the index began in June 2017.

Forty-five per cent of respondents said they are not confident they can cover their living expenses this year – up 5 points from the fourth quarter of 2021 – while 43% are concerned about their current level of debt (also up 5 points).

“Nearly two years into the pandemic, financial confidence among Canadians has reached a record low, with household debt becoming increasingly worrisome,” said Grant Bazian, MNP president. “Canadians’ financial optimism typically wanes as the holiday bills become due, but this year more than any other, Canadians are feeling more financially insecure, likely as a result of the Omicron variant, and resulting pandemic fatigue, along with rising inflation, and the potential for interest rate increases this year.”…read more.