Canadian consumer confidence fell to its lowest level since September 2001, according to The Conference Board of Canada’s Index of Consumer Confidence – September 2005, released today.

Confidence declined by 10 points to 108 in September, the steepest drop since the Conference Board began surveying Canadians monthly in December 2001.

The survey was conducted between September 8 and September 13, at the same time consumers across Canada faced soaring fuel prices.

“The spike in gasoline prices following Hurricane Katrina left less money in consumers’ pockets and clearly affected confidence in September,” said Paul Darby, deputy chief economist, in a release. “Even so, this is a major decline in consumer confidence and will likely affect spending and Canada’s overall economic performance for the next six months.”

While all components of the Index declined, the sharpest drop occurred in attitudes toward big-ticket spending, such as purchases of homes and cars. Confidence fell in all regions of the country for the second consecutive month.