Jan 5, 2010 - National consumer confidence ended the year 2009 on a stronger footing compared to pre-recession levels, according to the Conference Board of Canada.
The balance of sentiment about job growth prospects continued improving in the fourth quarter of 2009, staying positive for the second consecutive quarter.
A positive balance of sentiment means more survey respondents said it was a good time to buy a big-ticket item, such as a home or car, than said it was a bad time to do so. This indicator is an important factor underlying the housing market because as the economy improves and edges up, so does real estate.
Also, more survey respondents expect employment to pick up over the next six months and fewer expect layoffs.
The areas which showed the greatest consumer activity include the Prairie and Atlantic provinces.
Consumer sentiment in the Prairie region improved for the third consecutive quarter in the fourth quarter of 2009, returning to the pre-recession level recorded in the second quarter of 2008.
Decisions about making major purchases, such as a home or a car, improved for the fourth consecutive quarter, and this sentiment has stayed positive for two consecutive quarters.
Buyers in Saskatchewan and Manitoba felt positive about job growth prospects, building on significant increases recorded in the previous two quarters. The balance of opinion about job growth has stayed positive for three consecutive quarters, and is also back on par with pre-recession levels.
In Atlantic Canada, sentiment about making major purchases, such as a home or a car, held steady and has remained positive for the second consecutive quarter.
Consumers also expect job growth in the fourth quarter of 2009, and this is the first time since the second quarter of 2008 that people have felt positive about this.
The balance of sentiment about household budgets over the next six months also improved in the fourth quarter.