Canadian Consumer Confidence At 25-Year Low

December 22, 2008 1:16 p.m. EST

Ottawa, Ontario (AHN) - Consumer confidence in Canada dropped to 67.7 in December, a 3.3 points decline and the lowest level in more than 25 years. It was the third straight month that consumer confidence in the country, monitored by the Conference Board of Canada, had gone down.

According to Glen Hodgson, chief economist of the Conference Board, "Only during the recession of 1981-82 have we seen lower levels of confidence... Despite the rapid fall in gasoline prices across the country, consumers continue to be gloomy about their financial situation."

The board said many Canadians feel they are not in a better financial position now compared to six months ago, and they expect the situation to even worsen in the next six months.

This point of view is expected to result in Canadians further curbing spending and paring down debt, which could hurt the nation's retail sector and other major consumer purchases such as cars, appliances and houses.