Quebec households are more optimistic about their personal finances than they were a year ago, according to a recent survey by the Conseil québécois du commerce de détail (CQCD)/Retail Council of Quebec.

The survey of more than 1,000 residents, conducted by Groupe Altus, shows that 74% see their financial situation as having improved or remained stable in the last 12 months.

Furthermore, in the next 12 months, 83% expect that their financial situation will either remain the same or improve, up from 75% last year.

However, 26% of households reported a deterioration in their financial situation in the last 12 months. Among the reasons mentioned were the increase in the cost of living, a reduction in salary or working conditions, job loss, and a slight decrease in the value of their investments.

In the year ahead, 12% of households expect their financial situation to worsen, driven by an increase in the cost of living or a worsening of working conditions. Quebecers are less concerned about the possibility of job loss or the declining value of their investments than they were last year.

Quebecers are more optimistic this year with regard to Quebec’s financial situation for the next 12 months. In fact, only 27% expect it to deteriorate, down from 62% last year.

“We can therefore conclude that, in general, Quebecers are more optimistic than they were last year, as regards both Quebec’s financial future and their own personal finances,” said Gaston Lafleur, president of the CQCD.

When it comes to spending, half of respondents believe that this is not a good time to make a major purchase. But the proportion of households planning to purchase a big-ticket item in the next 12 months rose to 28% from 24% in 2009.

Following a sharp boost in consumer confidence index in autumn 2009, the Altus – CQCD index has slipped slightly to 105 from 114.4. But it remains quite high, nearly 24 points above the all-time low of 81.4 recorded last year.

“Although the situation with regard to public finances, the deficit and the debt remains worrisome and could affect spending intentions, Quebec households’ optimism is encouraging, with a positive confidence index for the second consecutive quarter,” said Lafleur. “We believe that sales will increase more gradually. More confident than in 2009, Quebecers will spend wisely and with greater assurance as the economy gains strength.”

IE