Retail sales in Canada are expected to grow this holiday season, amid increased consumer confidence.
Holiday sales are predicted to be 4 percent higher than last year, according to CNW.
“Retailers’ wish for a more enthusiastic consumer may come true this holiday season,” says Ernst & Young partner Daniel Baer. “People are optimistic about the expected tax relief for the middle class, promised by the newly elected government.”
CNW attributed the optimistic outlook to several factors, including larger federal child tax payments, increased employment and job creation, lower gas prices and healthy consumer confidence.
A study by Ernst & Young predicted that millennials will be behind the majority of retail sales, and will spearhead a transition from buying material gifts to preferring to pay for exclusive, high-quality experiences.
The Bloomberg Nanos Consumer Confidence Index recently reached a record 58.3, the highest rating since October of last year. Bloomberg reported that confidence was up in British Columbia, Ontario, Quebec and the Atlantic region, with British Columbia registering at 63.3, the highest rating since the survey began in 2008.
Bloomberg noted that the index has steadily increased since the October elections, and also cited improvements in the economy outlook and personal finance sub-indexes as reasons for the rise.
The Nanos survey found that 27.1 percent of respondents believe the Canadian economy will be stronger in six months, the highest rating since April 2012.
The pocketbook sub-index, which accounts for feelings about job security and personal finances, grew to 59.5. The expectations sub-index, which measures attitudes about the economy and real estate market, rose for the ninth week in a row to 57.1, surpassing the 50.7 average for the year.
The optimistic consumer outlook comes as employment in Canada reached record numbers in October.