Consumer expectations about the economy, household income and employment fell in February to an index value of 97.9, down from 98.5 in January and 100.4 in December, according to the latest consumer confidence index by TNS Canadian Facts.
The third consecutive decline has not been seen since the fall of 2005 after Hurricane Katrina, which hammered economic confidence.
The index measuring consumer spending also dropped in February, suggesting that fewer people think now is a good time to make major purchases.
Canadians, however, were slightly more confident about the economy. TNS' index measuring current perceptions rose in February from the decline in January, which was caused by a staggering drop in the equity markets and initial fears of a U.S. economic recession.