New Brunswick should reach and maintain an index of
56-65, upper bound.
OVERVIEW
Importance
The CCI (Consumer Confidence Index) is a measure which takes into account how willing / unwilling a person (or “consumer”) is to spend money based on how they expect their finances, the general economy, and unemployment rates to be in the near future. On the other hand, the BB (Business Barometer) index is a measure of business confidence in the future of a business in the current and near future state of the economy. Both measures are estimates taken from a survey of random consumers and/or businesses and should be considered a census rather than a representation of the total population. As these two indexes demonstrate both the supply and demand sides of an economy’s confidence, both give a reasonable preview of how much consumption there will be in the future, and whether or not businesses are expecting demand (or lack thereof) from consumers. Having both of these trends moving in the same direction shows similar confidence in the economy from both consumers and businesses.
Problem
The Consumer Confidence Index (CCI) and the Business Barometer index (BB), measured by Narrative Research every fifth quarter for the Atlantic region and the Canadian Federation of Independent Business (CFIB) on a monthly basis for all provinces respectively, are at an all-time low.
Cause
Recent events due to the COVID-19 lockdown and its aftermath have pushed the economy into a position where its future is very uncertain, causing many to lose confidence in the outlook for households and businesses.
