Consumer confidence appears to be in a freefall now with the spread of the COVID-19 (coronavirus) pandemic.

The Index of Consumer Confidence, released Wednesday by the Conference Board of Canada, plunged by 32.0 points in March amid the coronavirus fears, the largest monthly decline ever.

“COVID-19 is causing anxiety in Canadians and this has implications for Canada’s economy given that consumers have been the main engine of economic growth,” said Pedro Antunes, Chief Economist for The Conference Board of Canada. “With many people self isolating, large gatherings mostly cancelled and tourism activity drying up, many Canadians are staying home, which will have a profound impact on economic growth.”

The report said Alberta is facing the effects of both the coronavirus and the sharp decline in oil prices as consumer confidence fell by its fourth largest amount ever.

“The Alberta index fell 20.7 points in March. Confidence in the province has has been weak in general but March was a major blow,” said the report. “All questions saw a more negative tone in March, but the weakest responses were about job prospects – only 6.4 per cent of respondents expect their job prospects to improve.”

The conference board said every region in Canada saw a double-digit decline in confidence and every question saw a significant weakening in responses. Atlantic Canada and Quebec each saw their largest monthly declines ever. Ontario, British Columbia and Saskatchewan-Manitoba all saw their second largest.

“Views geared towards the future were especially weak. The share of respondents who expect their finances to worsen reached the third highest level ever,” added the report.

The consumer confidence survey has been ongoing since 1960. It is conducted monthly by The Conference Board of Canada and is administered by Leger.

“The Index of consumer confidence is constructed from responses to four attitudinal questions posed to a sample of Canadian households. Those surveyed are asked to give their views about their households’ current and expected financial positions and the short-term employment outlook. They are also asked to assess whether now is a good or a bad time to make a major purchase such as a house, a car, or other big-ticket items.

The latest results are based on responses to our online survey of over 3,000 Canadians,” said the board.