Canadians are feeling decidedly less confident about their family finances and less willing to spend on big-ticket purchases than they were a month ago, according to a survey by the Conference Board of Canada.
A telephone survey of 2,000 people in early August showed the index of consumer confidence dropped 5.6 points in August to 118.3, its lowest point in a year.
The sudden dive in confidence follows several months of mostly stable readings.
The board says all four components of the index declined during the month with consumers' enthusiasm for major purchases taking the biggest hit.
To the question of whether the time was right for spending on an item such as a car or home, 54.4 per cent said yes, down almost 6 percentage points from July.
When asked to predict the state of their family's finances 6 months from now, 28.7 per cent of respondents said they expect to see an improvement. That's about the same number who were upbeat in July.
But those with a pessimistic view rose sharply, by 3.9 percentage points, to 14.9 per cent.
The Conference Board says the gloomy mood spread across the country with the confidence of consumers in British Columbia crumbling fastest.
© The Globe and Mail
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