Source: The Canadian Press

Canadians grew even more uncertain about their finances in August as job losses mounted, consumer prices rose and the U.S. economy appeared to remain on shaky ground, according to pollsters Harris-Decima.

The August Harris-Decima and Investor’s Group consumer confidence index fell to 82.4 from the last reading of 85.9 in May.

“Although the decline was relatively small, this marks the second quarter in a row that Canadian consumer confidence has seen a slight drop,” said Harris-Decima senior vice-president Doug Anderson.

“It appears to be driven by a slightly less optimistic view of the short-term economic outlook.”

Pollsters surveyed 2,000 Canadians in the final two weeks of August as consumers reflected on the effects of two consecutive interest rate hikes in June and July and a new tax in Ontario and British Columbia. Further dimming outlooks was a reading that the jobs situation was not improving significantly as the July unemployment rate edged up 0.1 percentage points to 8%.

Canadians were also digesting reports of higher consumer prices, a weakening housing market and fears that the United States may slip into a double-dip recession.

Only 20% of respondents said they believed those good times will come in the next twelve months, falling from the 25% who said so in the last survey.

However, about 26% said they believe they themselves will be better off financially in a year, with only 14% expecting to be worse off.

A majority of 55% said they believe there will be improvement for the Canadian economy in the next five years, with only 32% saying they think things will get worse.

Canadians were, however, more optimistic than their southern neighbours, where the confidence index dropped to 68.9 from 73.6 recorded in May.