President Trump Trade Comments Cause Canadian Consumer Confidence Nosedive

U.S. President-elect Donald Trump speaks at his election night rally in Manhattan, New York, U.S., November 9, 2016. REUTERS/Carlo Allegri
U.S. President Donald Trump November 9, 2016. REUTERS/Carlo Allegri

NAFTA USA Canada Mexico - North American Free Trade Agreement
NAFTA USA Canada Mexico – North American Free Trade Agreement

OTTAWA – Canadian consumer confidence has taken a nosedive following the Twitter war of words started by United States President Donald J. Trump. The American President has taken aim at Prime Minister Justin Trudeau following the recent G-7 Summit over trade. President Trump has long advocated that the North American Free Trade Agreement is a terrible deal for the US.

Trump has promised trade sanctions and has taken to his Twitter account to call down Prime Minister Trudeau

The Bloomberg Nanos Canadian Confidence Index realized quite negative pressure over the past week which, coincidentally, is in the wake of US President Donald Trump saying Canada will pay for the comments of Prime Minister Justin Trudeau.

“Of note, there was negative pressure on all four economic indicators – personal finances, future strength of the Canadian economy, job security and future value of real estate,” said Nanos Research Group Chairman Nik Nanos. “The most pronounced one-week drops in consumer confidence were in the Prairie regions and Ontario.”

The BNCCI, a composite of a weekly measure of financial health and economic expectations, registered at 55.28 compared with 57.21 four weeks ago. The twelve month high stands at 62.17.

The Bloomberg Nanos Pocketbook Index is based on survey responses to questions on personal finances and job security. This sub-indice was at 59.69 this week compared to 59.34 four weeks ago. The Bloomberg Nanos Expectations Index, based on surveys for the outlook for the economy and real estate prices, was at 50.88 this week (compared to 55.08 four weeks ago).

The average for the BNCCI since 2008 has been 57.05 with a low of 43.28 in December 2008 and a high of 62.92 in December 2009. The index has averaged 57.97 this year.