Canadians have become less optimistic about their financial situation in the short term, but are more confident about the economy, the February RBC Canadian Consumer Outlook Index shows.

RBC reported that the monthly index, released on Monday, rose three points to 109 from 106 in January. Gains were driven by improving perceptions of the economy, with 53% describing the state of the economy as good, up from 48% last month, while 47% still consider the economy to be in bad shape.

Looking ahead, more Canadians also expect the national economy to improve over the next year. The percentage of those who expect it to get worse fell to 13% in February from 17% in January.

“Canadians may be feeling more positive about the economy because job growth numbers were released in early February,” said Robert Hogue, senior economist at RBC.

“We expect to see a sustained improvement in the labour market over the course of the year.”

In the mean time, job anxiety remained relatively steady in February. A quarter of Canadians said that a member of their household is worried about losing their job or being laid off, compared to 26% in January.

Job anxiety levels increased in two regions: in Ontario by five percentage points to 30%, and in Atlantic Canada by six percentage points to 24%. Levels fell in all other regions of the country, with the lowest levels of job anxiety in Manitoba and Saskatchewan at 13%, and Quebec at 17%.

When it comes to personal finances, the percentage of Canadians who think that their situation will improve in the next three months has fallen slightly to 30% in February compared to 32% in January.

Canadians remain more optimistic in the longer term, with 45% expecting their personal economic situation to improve over the next year, unchanged from January.

“The best way to deal with uncertainty and potential challenges is to create a financial plan,” said David McKay, group head, Canadian Banking, RBC. “It helps gain control over day to day finances and build a path to financial security in the long run.”

Most Canadians expect interest rates to go up in the next six months, while one-in-three Canadians believe interest rates will remain unchanged over the same period.