Canadians say that they will spend more on holiday purchases this year than they did last year, according to a survey from TNS Canadian Facts.

“With inflation and unemployment largely in check, consumer optimism is translating into an early good news story for retailers as they enter the important holiday season,” said Richard Jenkins, vp of TNS Canadian Facts and director of the marketing research firm’s monthly Consumer Confidence Index tracking study.

The survey found that Canadians plan to spend $877 on holiday gifts, decorations or other holiday items this season, a significant 12% increase over last year’s estimated holiday spending, which averaged $782. In addition, the number of heavy spenders is rising: 13% of Canadians plan to ring up over $2,000 in holiday purchases this season, up from 9% recorded last year.

The Present Situation Index, which captures evaluations of the overall state of the economy and the employment situation, now stands at 114.0, a slight drop from 114.8 in October. While consumers remain relatively positive about the underlying strength of current economic conditions in Canada, since July there has been a slow, steady erosion in confidence about the current state of affairs.

“The regionalization of economic perceptions continues, with B.C. and the Prairie provinces enthusiastic about the current situation, while those east of Manitoba are less thrilled,” added Jenkins.

Only 58% of Ontarians think the current situation is good, compared with 69% of Prairie residents, and 70% of British Columbians.

The Expectations Index, which measures consumers’ estimation of the economy, household income and employment six months from now, recovered after three consecutive months of relatively low levels. It now stands at 103.1, up from 99.3 in October and similar readings in September and August.

The Buy Index, which gauges the degree to which people think the current period is a good time to make major purchases, has fluctuated wildly over the last several months. In November the Index rose to 96.0, up from 92.0 in October, but similar to the 96.7 recorded in September.

Consumer Confidence Index tracks Canadians’ attitudes about the economy each month and is part of a global study conducted by TNS in 18 countries. A total of 1,015 nationally representative Canadian adults were interviewed between November 13 and 16. The survey results are considered accurate to 3.1 percentage points, 19 times out of 20.