A recent survey of Canadians shows that a lethargic economy in the Great White North is dragging on consumer confidence, which could have an impact on the promotional products industry. 

Nanos Research polls 250 Canadians each week on their personal finances, job security, economic forecasts and real estate market expectations, and then aggregates the numbers at the end of the month, while Bloomberg reports on the findings using four-week rolling averages. At the end of April, only 13.1% of Canadians had reported feeling that the economy will strengthen over the next six months, a near-record low for the question.

The Bloomberg Nanos Canadian Confidence Index ended April at 54.9, down from 55.4 month-over-month after two consecutive monthly gains. Canadians are concerned about growth forecasts and their personal financial situations, according to phone polling.

“Canadians’ confidence in the economy continues to hover at depressed levels, suggesting prospects for a strong rebound are dim,” wrote Bloomberg reporter Theophilos Argitis this week. “Canada’s economy is undergoing one of its most sluggish periods in the past decade, with growth at a near halt amid a confluence of negative developments, including last year’s sharp decline in oil prices and growing global trade tensions that have curtailed business investment.” 

Additionally, the real estate market has decelerated in major metropolitan areas such as Toronto and Vancouver, though consumer forecasts for that industry seem to be improving slightly. 

In this most recent report, nearly 30% of Canadians reported their personal financial situations have worsened over the past year. Households in Quebec remain the most optimistic, while those in Alberta and other prairie provinces are the most pessimistic. 

Russell Bird, owner of The Promo Addict (asi/302225) in Sherwood Park, AB, told ASI Canada that his company is doing well despite the economic sluggishness. He’s also seeing some renewed enthusiasm in the province after the April election of Jason Kenney of the United Conservative Party as its newest Premier; he ran on a renewed focus on strengthening the province and getting its financial house in order.

Never doubt the spirit and resilience of Albertans.

We are open for business, focused on job creation.

We are Canada’s beating heart of free enterprise values. pic.twitter.com/uDwtj8pPQl

— Jason Kenney (@jkenney) May 8, 2019

Alberta has suffered in recent years as growth of its oil and gas market, once one of the world’s largest, plummeted. While oil and gas makes up nearly 30% of the economy there, a combination of inadequate pipeline capacity and new or expanded environmental regulations in recent years has brought that industry to its knees. According to the Global Petroleum Survey 2018, the province dropped from 14^th place in 2014 all the way to 43^rd place on the world’s ranking of oil and gas regions ready for investment. 

“The uncertainty of the oil market continues to affect the marketplace,” Bird said. “Customers are definitely more cost-conscious and doing more research online before purchasing. But I see a lot of excitement in the market in Alberta because of our new government.” 

Bird says his company’s sales are up from the same time last year, most likely because of a renewed focus on more strategic marketing. “We’re capturing a larger percentage of the local promo market,” he says. “Most of our large customers’ spends are on track to meet but not exceed last year’s numbers.” 

Christine Courtemanche, vice president of Lineaire Infographie Inc. (asi/253727) in Laval, QC, says her company hasn’t noticed much downturn in the face of economic uncertainty. “There’s been no change for us so far,” she says. “We have noticed that U.S. suppliers have increased their prices a lot, probably because of the ongoing trade war with China. That’s pushed us to use more Canadian and Chinese suppliers. I think the economic slow-down is temporary, but I don’t know how long it will last.”