Happy, free-spending consumers are continuing to give a boost to the Canadian economy.

Canadians were more enthusiastic about making big-ticket purchases and more optimistic about job prospects in January, according to The Conference Board of Canada's latest consumer confidence index.

"Consumers indicated that they will continue to be a source of strength for the Canadian economy," Paul Darby, the Board's deputy chief economist, said in a statement. "Their optimism about job prospects, along with a willingness to take advantage of low financing costs, continues to bode well for the domestic economy."

The same could not be said, however, for business.

"In contrast to the positive outlook expressed by consumers, business confidence dipped sharply in the fourth quarter. This indicates that the outlook is less rosy for manufacturers, especially those producing finished goods for U.S. markets, which is consistent with our recent forecast."

In January, almost 58 per cent of respondents said the present was a good time to make a purchase such as a car or home, an increase of nearly three percentage points. The percentage of respondents that expected the employment situation to improve in the next six months rose to 23.1 per cent, 4.4 percentage points higher than in December. When questioned about their families' overall financial circumstances now and in six months, respondents were slightly more negative about their prospects.

Consumer confidence rose in every region except British Columbia. The results were based on over 2,000 telephone interviews conducted between January 13th and 19th.