Consumer confidence in Ontario improved in January 2012 after a drop in December, according to the Conference Board of Canada’s index of consumer confidence. Sentiment regarding household budgets, major purchases and employment were all up in January compared to December 2011.

The balance of sentiment about household budgets over the next six months was up slightly after dipping in December, moving further into positive territory. This signalled that more households expect their budgets to improve over the next six months than expect the opposite.

The balance of sentiment about making major purchases, such as a home or a car, retreated from a three-year low in December 2011 but remained in negative territory in January. 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 about job growth prospects improved from December but remained in negative territory in January.