Consumer confidence declined 5.7 points to 118.0 between September and December, mainly because respondents were reluctant to make big-ticket purchases, according to The Conference Board of Canada’s quarterly Index of Consumer Attitudes-Winter 2003, released today.

“Despite the decline in confidence found in the quarterly survey, I am optimistic that Canada’s excellent employment situation will ensure a good Christmas shopping season,” said Paul Darby, the Conference Board’s Director of Economic Forecasting. “Confidence actually stabilized during November and December, based on the results of our new monthly survey.”

The Canadian economy generated another 42,000 jobs in November, bringing the number of net new jobs to 502,000 since the start of 2002. The unemployment rate also dropped in November.

“The survey results suggest that Canada’s spectacular job growth is contributing to a sense among consumers that their employment prospects are secure,” said Darby.

In the quarterly survey results, the percentage of respondents who felt their financial situation would remain the same or improve is almost unchanged – 82.3% in December, compared to 82.8% in September.

Respondents to the December survey indicated they were more hesitant about making big-ticket purchases such as a car or a home – 56.1% felt it was a good time to purchase, a drop of 7.3 percentage points from the September survey.

Consumers’ caution about purchasing major items could be explained by how families view their financial situation now, versus six months ago. Respondents who felt their financial situation is better or the same fell by 3.4 percentage points from the September survey, to 78.5% in December.

The decline in confidence occurs in most regions of the country. Quebec’s confidence rating rose in the survey, and is now the highest of all the provinces. The Atlantic provinces recorded the largest decline in the survey period, but British Columbia’s consumers still have the weakest confidence in the country.

The Winter 2003 survey was conducted during the first two weeks of December.