National consumer confidence improved in January 2012 after deteriorating in the previous month, according to the Conference Board of Canada’s index of consumer confidence.

The upward tick in monthly consumer confidence reflects an improved balance of sentiment regarding the timing of a major purchase, household budgets and employment prospects over the next six months. All regions recorded improvements in consumer confidence compared to the previous month, with the exception of Quebec.

The balance of sentiment about household budgets increased in January compared to December 2011. However, the balance remains low compared to recent history.

The national balance of sentiment towards making major purchases, such as a home or a car, improved in January 2012 but remained in negative territory. A negative balance of opinion means more households said it was a bad time to buy a big-ticket item, such as a home or car, than said it was a good time to do so. This is an important factor underlying the housing market.

The balance of sentiment for job growth prospects edged up in January from December’s three-month low, but remained in negative territory. This was the result of a decrease in the number of respondents expecting fewer jobs. A negative balance of opinion means more households said they expect the employment outlook to worsen in the next six months than said they expect it will improve.