TORONTO - The confidence of Canadians in their economic well being is being shaken by increasing uncertainty in the global economy and a slumping domestic recovery.

That's the bottom line finding of the RBC's Canadian Consumer Outlook Index for September.

After remaining stable since December, the index fell 14 points (from 108 to 94), driven by declines in all three of its sub-indexes -- current conditions, expectations, and personal investments.

The survey's results come a day after Statistics Canada reported the economy shrank for the first time in almost a year in July, a stark signal that weak growth lies ahead and Canadians face a long and hard climb back from recession.

A lacklustre Statistics Canada report on economic growth Thursday also came as the country's two main stewards of the economy -- Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney -- both acknowledged that an earlier growth spurt this year has ended and uncertain times are upon the country.

In the Royal Bank consumer outlook report, 60 per cent of those surveyed said they believe the overall economic outlook is good, down seven points from last quarter.

Job anxiety, at 22 per cent, is up two points, and 46 per cent of respondents said they expect Canada's economy to improve in 2011 -- down nine points from three months ago.

Debt management continues to weigh on the minds of consumers, with 51 per cent saying they're focusing on reducing debt, and 39 per cent planning to reduce their spending.

Overall, about 60 per cent of Canadians say they view the state of the economy as "good."

Residents in the Prairies ranked the most optimistic with nearly 80 per cent saying they saw the economy as good while British Columbia ranked. the lowest for confidence (53 per cent).

Ontario logged the biggest decline since the previous quarter (57 per cent).

"The uncertain and uneven global economic outlook has not gone unnoticed by consumers, translating to heightened anxiety and weaker confidence," said RBC's chief economist Craig Wright in a release.

"The continued uncertainty and uneven recovery was one of the factors contributing to us downgrading our 2010 forecast, expecting GDP growth of 3.3 per cent, down from 3.6 per cent projected last quarter."