With low interest rates and stable employment indicators, consumer confidence has posted a significant gain for the second consecutive quarter, according to a recent survey conducted by Decima Research Inc. in conjunction with Investors Group.

Based on the survey which was conducted February 16 – 24, the Decima-Investors Group Index of Canadian Consumer Confidence now stands at 86.5, up sharply from 79.0 recorded in November, and 71 in September. Within Canada, consumer confidence has risen in the first three months of this year in every region, but most significantly in Quebec and Manitoba/Saskatchewan. Compared with other Canadians, B.C. residents continue to express the least confidence.

The Index of Consumer Confidence contains a “sub-index” focusing on consumers expectations for how they expect themselves and the economy overall to fare over the coming year and beyond. As before, consumers in North America are generally less optimistic about prospects for the future, in comparison with current conditions. However, consumer expectations have risen by more than 10 points in both Canada (to 84.1, up 10.4) and the U.S. (to 87.2, up 10.6).

“These latest numbers indicate that the consumers are continuing to respond to positive economic indicators, and will likely feel encouraged to continue spending provided economic and political conditions remain stable over the next few quarters”, comments Dr. Keith Neuman, senior vice president at Decima Research.

The results are based on a Decima Express survey conducted with a representative sample of 2,009 Canadians Its results can be considered accurate for the population overall to within plus or minus 2.2%, 19 times out of 20 . The index is conducted on a quarterly basis. It is modelled closely on the University of Michigan’s Index of Consumer Sentiment.