Canadian economy a ‘black cloud with no silver lining’: Maru index

A monthly index that tracks how Canadians feel about their personal finances and the broader economy plummeted in April to its lowest ever level.

The Maru Household Index Report for April 2023 is at 83, down dramatically from its high-point of 107 back in July 2021. April’s number is the lowest since it began tracking two years ago.

“On a personal level, Canadians are more pessimistic this month when it comes to their job security, desire to invest, and ability to put money away for long term savings,” the monthly report reads.

“As for the economy, two thirds share an increasingly persistent view that it’s on the wrong track and with no prospect of improving any time soon.”

“Clearly, the recent federal budget had no positive impact on the outlook for the country’s economic improvement…”

More Canadians are worried about personal job loss, with one in seven saying it’s likely they will lose their job over the next two months.

Confidence in investing in financial markets is also down dramatically. Seventy-three per cent believe it is not a good time to enter the markets, up 12 per cent since November 2022.

Two thirds of polled Canadians believe the country is on the wrong track and won’t likely improve over the next sixty days. Two thirds also have similar sentiments about the local economy where they live, saying they don’t expect things to look up over the next two months.

“The narrative is not complete without noting the pessimism about the economy that is truly the black cloud with no silver lining at the moment,” the report states.