Canadians’ investment sentiment registered its first decrease in two years as real estate and registered savings plans both showed softness, according to a national poll for Manulife Financial.

The Manulife Investor Sentiment Index fell six points to +23 in September, the first decline since March, 2005.

“The index for the previous five quarters suggested Canadians were showing a very stable and relatively high level of confidence in long-term investing,” said Bruce Gordon, Manulife Financial’s senior executive vp and general manager, Canada, in a news release.

“They are still confident, since all categories remain in double-digit, positive territory, but we’ve seen some concerns surface about real estate markets, particularly in the United States. Both investing in other properties and their own homes registered declines this quarter.”

The latest survey, of 1,001 Canadians by Maritz Research, shows eight of 10 categories of investments and vehicles edged lower from the last poll in June. After showing up as the only declines in June, stocks and cash registered the only gains in September.

“Overall, the index has remained above +20 for the past six quarters and that’s generally a good sign,” Gordon added. “Through much of 2004 and into 2005 we were in softer territory, so we’re optimistic about this overall economic picture given recent Conference Board measures of consumer confidence in Canada.”

Since its launch in 1999, index has remained in positive territory overall, hitting a peak of +35 in early 2000 and a low of +11 in December 2001.

Its first major decline in mid-2001 followed a period of stock market volatility. Continued stock market woes and terrorist attacks in the United States later that year led to a sharp decline in the index.

The quarterly index monitors how Canadians say they feel about investing in 10 different categories and vehicles. The index reflects the percentage of those who say they believe it is a good or very good time to invest – minus those who feel the opposite.

All six investment categories and four vehicles measured each quarter remained in double-digit, positive territory in September – only the second time that’s occurred since the surveys began in 1999.

Among investment categories, putting money in real estate fell by 14 points for investment property and seven points for their own home. Fixed income investments reversed a previous gain in June by falling seven points. Balanced funds also fell seven points, while the index for equities rose one point. Cash — the only other category to gain any ground — rose by two points.