Canadian consumer confidence up slightly
Last Updated: Tuesday, June 27, 2006 | 11:33 AM ET
CBC News
Consumer confidence in Canada grew slightly through the spring, according to a quarterly poll released Tuesday.
The Decima-Investors Group index of consumer confidence rose modestly by 0.6 percentage points to 88.6 in May from 88 in February. In May of 2005, the index stood at 87.9.
"Since the last measurement, unemployment has remained low, inflation is mild, but interest rates have gone up, and the stock market has weakened," said Decima chief executive Bruce Anderson.
"As well, the dollar has gained ground against the U.S. currency, putting some exporters at risk. Oil and gasoline prices continue to be at very high historical levels," he said.
This combination of factors have produced a "muted" effect on consumer confidence, Anderson added.
Regionally, confidence ran highest in Alberta, with an index of 100.4, and British Columbia at 93.2. Confidence was lowest in Ontario at 85.5.
Anderson noted that confidence in Alberta was off from the previous quarter but still well ahead of the national average.
The Decima-Investors Group report was based on a poll of 2,035 Canadians surveyed between May 25 and June 4. The survey is considered accurate within 2.2 per cent, 19 times out of 20.
Poll respondents are questioned on topics such as whether they think it is a good time to make a major purchase, and whether they believe the economy will grow or shrink in the near future.
U.S. confidence up
Separately, the New York-based Conference Board reported Tuesday that U.S. consumer confidence rebounded this month.
The research group said its confidence index rose to 105.7 from 104.7 in May. The June reading beat the 103.9 mark that analysts had been forecasting.
"The slight bounce-back in confidence this month was a result of the moderate improvement in consumers' expectations," said Lynn Franco, director of the Conference Board Consumer Research Center.
Consumers' outlook for the next six months picked up, while their outlook on the current situation declined, the Conference Board said in its monthly report.
