Economic uncertainty will restrain growth in Canada’s consumer-dependent industries such as retail, food and travel, according to a five-year projection released this morning by the Conference Board of Canada and the Business Development Bank of Canada.
For the accommodation industry, the report found that consumers and businesses are rethinking travel plans in light of prsistant global economic woes.
It notes Canadians are taking advantage of the strong dollar to travel abroad, while international travel to Canada is slowing. The report projects the industry’s profits will weaken this year and stagnate in 2012.
For the food and beverage industry, the report projects limited profit growth through 2015.
For the food services industry, including restaurants and catering, the report found the industry is headed toward its best performance on record this year – $1.6 billion. But it projects high household debt and consumers concerns about the economy will limit growth.
For retailers, the report projects a decline in sales growth and profitability this year. It predicts Canadians will delay big-ticket and discretionary purchases until their finances improve. The industry is projected to climb again in 2012 and post steady growth in sales, revenue and profitability thereafter.
Jenny Wagler
@JennyWagler_BIV