A trade war with the United States is weighing on the minds of Canadian consumers, especially after President Trump warned Canada will pay for Justin Trudeau’s comments.

The weekly Bloomberg Nanos Canadian Confidence Index dropped to 55.28 from 57.05 a week earlier and from 57.21 just 4 weeks ago.

“Of note there was negative pressure on all four economic indicators – personal finances, future strength of the Canadian economy, job security and future value of real estate,” said Nanos Research Group Chairman Nik Nanos. “The most pronounced one week drops in consumer confidence were in the Prairie regions and Ontario.”

Last week’s reading is the worst of 2018 so far; in the first week of January it was 61.91.

Positive responses fell sharply for confidence in the economy, job security, personal finances including mortgages, and future real estate prices.

The declines were widespread across most regions, age groups, income bands, and for both renters and homeowners.

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