(Bloomberg) -- Consumer confidence slipped into negative territory for the first time in more than six months, as a growing number of Canadians say their own financial circumstances are worsening.

The Bloomberg Nanos Canadian Confidence Index, a measure of sentiment based on weekly polling, dropped to 49.5. A level below 50 suggests net negative views about the economy. It’s the lowest reading since April and compares with 53.1 in early June, this year’s peak.

The number suggests Canadians are becoming less optimistic about their financial health and their wealth, which is closely tied to housing. Canadian home sales fell for a third straight month in September as the Bank of Canada’s aggressive interest-rate hikes continue to keep buyers off the market.

In the survey, 50.3% of respondents said their personal finances were worse off over the past year, versus 48.9% a week ago. And 16.7% said they believed that the value of real estate in their neighborhood will decrease in the next six months, the highest percentage since late April. 

“Real estate has been a significant influencer on consumer confidence. Canadians are positive but less bullish on the future value of real estate,” said Nik Nanos, chief data scientist of Nanos Research. “Factoring the long-term index trend and how it correlates to future gross domestic product, the tracking suggests an economic softening.” 

Over the past few months, evidence has mounted that the Canadian economy is cooling. GDP growth was flat in July after a contraction a month earlier. Consumer spending is showing signs of weakness as more households face mortgage renewals. The central bank’s latest surveys showed both firms and consumers are bracing for more impacts of previous rate increases. 

Bank of Canada policymakers led by Governor Tiff Macklem are counting on a period of slowing demand to allow supply to catch up, rebalancing the economy and helping tame price pressures. They’re widely expected to hold their overnight rate at 5% for the second straight meeting on Wednesday. 

Every week, Nanos Research surveys 250 Canadians for their views on personal finances, job security, the economy and real estate prices. Bloomberg publishes four-week rolling averages of the 1,000 telephone responses.

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