Canadian Consumer Confidence Remains Neutral Amid Oil Price Worries

Canadian consumer confidence remained neutral in late September as households continued to be uncertain about oil prices and interest rates. The Bloomberg Nanos Canadian Confidence Index rose to 50.88, a relatively stable reading but still below the 51.8 rating Canadians gave at the start of the month.

The index is based on interviews with over 1,000 Canadians and measures perceptions related to personal finances, job security, economic strength, and real estate values. While some groups expressed wariness, confidence among middle-income households that earn between $60,000 and $74,999 dipped to 47.23 from 48.82.

The Bank of Canada has been watching inflation closely, with Governor Tiff Macklem warning last week that higher oil prices could keep inflation elevated and require a higher policy rate. Economists surveyed by Bloomberg have raised their inflation outlook ahead of the bank's next rate decision on October 28.