Manitobans down in financial dumps: poll

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This article was published 28/07/2022 (784 days ago), so information in it may no longer be current.

Manitobans are the most pessimistic Canadians when discussing personal finances, a new Angus Reid Institute poll found.

Forty per cent of Manitoba’s 122 respondents said they’re in bad or terrible shape financially.

Manitoba leads every province in feeling the financial stress. Nationally, 28 per cent of Canadians reported their personal finances are in bad or terrible shape, according to the July survey.

“People feel like their economic situation is deteriorating, whether it’s because of inflation or other factors,” said Jon Roe, a research associate with Angus Reid Institute.

Manitoba was home to the second highest inflation rate — 9.4 per cent — among Canadian provinces last month.

“We’re certainly talking to a lot more people these days that are worried about their financial situations,” said Nathan Bell, a licensed insolvency trustee with Grant Thornton Limited.

People contact the company for personal financial reviews.

During earlier phases of the pandemic, Grant Thornton experienced a slowdown, Bell said. Government programs like the Canada Emergency Response Benefit were in full swing.

“A lot of those programs have now wound up, and of course with inflation rising and interest rates rising, I think people are finding themselves generally a lot less comfortable financially,” Bell said.

Three-quarters of Angus Reid Institute’s 1,606 respondents said now isn’t the time to make a major purchase, like a house, vehicle or home renovation.

“When (people) feel uncomfortable with their financial situation, they start reconsidering a lot of different things in their day to day,” Bell said.

A fence won’t be built in April O’Reilly’s yard until the price of lumber drops.

“We can’t now, because wood’s just gone crazy high,” O’Reilly said at a Real Canadian Superstore Thursday.

The path beside her home won’t be repaired, the house’s wooden floor won’t be replaced and outdoor siding won’t be upgraded in the short-term — there’s no room in the budget, O’Reilly said.

Chelsea Pearson traded her Hyundai Santa Fe for a Toyota Corolla to cut back on fuel.

“It’s a lot better on gas,” she said of the new ride.

Pearson’s finance-related stress has risen with the cost of goods, she noted.

Roe from the Angus Reid Institute referenced a poll the non-profit conducted in June. In it, nearly half of Manitobans reported doing worse financially at the time compared to a year prior.

Forty per cent of Manitobans figured they’d be worse off financially next year, and 60 per cent said it was difficult to feed their household.

“It seems like overall… people in Manitoba are struggling financially,” Roe said.

Meantime, Canadians’ confidence in the Bank of Canada is lagging, the July Angus Reid Institute survey found.

Fifty-three per cent said they don’t have confidence the central bank is making the right decisions to combat inflation.

The bank has raised its key interest rate to 2.5 per cent from 0.25 per cent over the past four months.

Inflation has exceeded the Bank of Canada’s expectations, which could trigger some Canadians’ doubts, Roe said. Another factor could be the institution’s comments on its own actions.

“There has been some admission on their part that they didn’t act as quickly as perhaps they should’ve, and maybe that is playing into the factor of confidence,” Roe said.

The doubt is political, noted Shachi Kurl, president of Angus Reid Institute.

Conservative party candidate Pierre Poilievre put a “bullseye” on the Bank of Canada by saying as prime minister, he’d fire the central bank’s governor, Kurl said.

More than two-thirds — 67 per cent — of past Conservative voters reported not feeling confident in the Bank of Canada’s decisions. It’s a jump from the 39 per cent and 47 per cent of past Liberal and NDP voters, respectively.

Conservatives are “dialed in to what Mr. Poilievre has said,” Kurl said, adding it’s “pretty unusual” for the Bank of Canada to be politicized.

The Angus Reid Institute’s July survey has a margin of error of +/- 2 percentage points, 19 times out of 20. The non-profit conducted the survey July 18 through 20.

gabrielle.piche@winnipegfreepress.com