Consumers have set aside any concern about the impact of global credit markets and overall U.S. weakness, to arrive at unprecedented levels of economic confidence, according to TNS Canadian Facts’ Consumer Confidence Index for November.

“With confidence overflowing, consumers are poised to open their wallets this holiday season,” stated Richard Jenkins, vice-president of TNS Canadian Facts.

The present situation Index, which captures evaluations of the overall state of the economy and the employment situation, now stands at 122.8. This represents an increase from 119.8 (2.5% increase) and the highest level in the more than three years that TNS has been conducting the study. Two-thirds of Canadians think the economy is “very” or “fairly good” at this time.

The expectations index, which measures consumers’ estimation of the economy, household income and employment in six months also rose for the second consecutive month. The November index value is 103.6 compared to 103.1 in October and 99.5 in September.

The buy index, which gauges the degree to which people think the current period is a good time to make major purchases, continues to exhibit the volatility it has shown over the past two years. The index now sits at 96.0, which is well below the highs of 2004 but well above the September value (91.3). At present, 42% think it is a good time to make major purchases (37% think it is neither a good time nor a bad time).

“With employment at record levels and the high dollar strengthening purchasing power, consumer optimism is translating into an early good news story for retailers as they enter the important holiday season as long as they can head off the resurgence of cross-border shopping,” added Jenkins.

The survey found that Canadians plan to spend $986 on holiday gifts, decorations or other holiday items this season, a significant 12 per cent increase over estimated holiday spending in 2006, which averaged $877.

The survey tracks Canadians’ attitudes about the economy each month and is part of a global study conducted by TNS in 18 countries.