Consumer confidence rises in Canada

Canadian consumer confidence, like that in the United States, has rebounded since the September 11 attacks despite the deteriorating economy, according to a new consumer sentiment index.

The index, planned as a quarterly indicator, rose to 79.0 per cent in November, from 71.0 per cent in a September poll taken shortly after the attacks.

The survey, taken between November 16-26, shows consumer sentiment up across the country, with significant gains in Ontario and Alberta.

"Low inflation, low energy prices and big discounting by major retailers are helping to encourage consumers spirits and holiday spending,"​ said Keith Neuman, vice-president at Decima Research, in a statement.

"This research is demonstrating that Canadians are responding much like Americans in these uncertain times."​

Both the Canadian and U.S. economies are considered to be in recession, although Canadian officials shy away from officially making such a pronouncement.

The domestic economy shrank during the third quarter for the first time in a decade and a wider contraction is expected in the fourth quarter.

The new Decima-Investors Group Index of Canadian Consumer Confidence -- conducted by a Canadian research firm and the country's biggest mutual fund company, Investors Group -- is modelled on the closely-watched University of Michigan's monthly consumer sentiment index.

The surveys authors said that allows them to make direct comparisons between Canadian and U.S. consumer sentiment.

Participants in the Decima-Investors survey are asked five questions about their perceptions of current and future economic conditions.