Business confidence in Canada fell in the third quarter, the second decline in a row, as sentiment deteriorated to levels of a year earlier, the Conference Board of Canada said in a report on Tuesday.  

The organization's index of business confidence dropped 5.5 points from the second quarter to 92.3. In the first quarter of 2012, it stood at 101.8.

The survey reflects fragile business and investment sentiment globally as fears about Europe's debt crisis have flared up again, while the U.S. budget impasse threatens to push the world's largest economy back into recession.