Consumer Confidence Hits 27-Year Low in December

(Reuters – David Ljunggren)

Consumer confidence in Canada dropped for a third consecutive month in December, hitting a 27-year low, the Conference Board of Canada said on Monday.

The index in December fell to 67.7 from 71.0 in November, the lowest mark since the 63.0 recorded during the recession of 1981-82. The index was 100 in 2002.

“Consumers continue to be gloomy about their financial situation, indicating that they are financially worse off today than they were six months ago. Similarly, they expect to be worse off six months from now,” Conference Board chief economist Glen Hodgson told a news conference.
He also said the board was revising its forecast for 2009 and would most likely come out with a gloomier set of figures early in the new year.

The index is based on a poll of 2,000 Canadians that the board carried out between December 4 and 12.