RBC CASH Index: Improved Economic Expectations And Investment Climate Return Consumer Confidence To Upward Trend

New York, NY -- After beginning 2006 on a down note, consumer confidence rebounded in February, resuming the positive trend that began in October of 2005, according to the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index, which measured the attitudes of 1000 Americans this week. Issued today by RBC Financial Group, the RBC CASH Index for February stands at 96.1, a considerable increase from 78.2 in January - and also significantly above the February 2005 level of 79.1.

"Americans have shaken off headline-grabbing layoffs and returned confidence to the upward trend that began late last year," said Vincent Boberski, director of Fixed Income Research for RBC Dain Rauscher. "Significantly more workers feel secure in their jobs than they did just a month ago. That means people feel better about their own financial situations, as well as business conditions in general.

Regarding the long-term outlook, Boberski added, "Widespread skepticism about where the country is headed makes us cautious, as we continue to expect a slowdown during the second half of the year. However, the current investment climate appears favorable and the labor market as a whole is healthy and poised for further gains."

RBC's CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal financial situations, savings, and confidence to make large investments. The Index, which is comprised of four sub-indexes: RBC Current Conditions Index, RBC Expectations Index, RBC Investment Index and RBC Jobs Index, is benchmarked to the 100 reading assigned in January 2002 when it was first introduced. This month's findings are based on a representative sample of 1,000 adults polled nationwide between February 6-8, 2006, by survey-based research company Ipsos Public Affairs. Highlights of the survey results include:

• Confidence in job security improved significantly, with 43 per cent of Americans reporting they are more confident about their job security than six months ago (compared to 37 per cent in January 2006). Confidence in job security is traditionally one of the most robust and resilient indicators of consumer confidence, but despite news of massive layoffs in the auto and associated industries, concerns over job security do not appear pervasive in the American public. The RBC Jobs Index for February stands at 119.3, a major recovery after two straight months of decline.
• One-quarter (26 per cent) of those surveyed rate their current local economy as strong, and 28 per cent rate their current financial situation as strong. As a result, the RBC Current Conditions Index for February stands at 111.6, up from 96.5 in January.
• Americans are more bullish on investing in real estate and the stock market this month, as 44 per cent of respondents believe the next 30 days will be a good time to buy real estate, and nearly half (46 per cent) believe the next month will be a good time to invest in the stock market. As a result, the overall investment climate has improved significantly and the RBC Investment Index stands at 101.5, its highest level in 16 months.
• Fewer than two in ten Americans (14 per cent) expect their local economies to be weaker six months from now. That's a sharp reversal from the January reading, as The RBC Expectations Index stands at 59.4 for February, compared to 33.9 last month.
• Opinions regarding purchases are somewhat mixed. While only 35 per cent of those surveyed say they are more confident in making a major purchase such as a home or a car, 43 per cent say they are comfortable making other household purchases.

RBC CASH Index

The RBC CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal financial situations, savings, and confidence to make large investments. The CASH Index is benchmarked against a baseline score of 100, assigned in January 2002 when the Index was introduced. The CASH Index is conducted by Ipsos Public Affairs. Results in this report include combined interviews of monthly surveys from July 2005 to December 2005. National results include 6004 total interviews and have a margin of error of +/- 1.3 for all adults. The Southeast regional results by RBC Centura include 908 total interviews with a margin of error of +/- 3.3 for all adults. The Southeast region covers interviews in Florida, Georgia, North Carolina, South Carolina and Virginia.

For more information on this press release, please contact: Brian R. Scanlon Ipsos Public Affairs Washington, DC 202.463.2146

About Ipsos Public Affairs Ipsos Public Affairs is a non-partisan, objective, survey-based research company made up of campaign and political polling veterans as well as seasoned research professionals. The company conducts strategic research initiatives for a diverse number of American and international organizations, based not only on public opinion research but often elite stakeholder, corporate, and media opinion research. It has offices in Chicago, New York City, Ottawa, San Francisco, Seattle, Toronto, Vancouver, and Washington, D.C., with affiliates around the world. Ipsos Public Affairs conducts national and international public opinion polling on behalf of The Associated Press, the world's oldest and largest news organization. Ipsos Public Affairs is an Ipsos company, a leading global survey-based market research group.

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