Paul Martin's Business Update - October 2nd

It was a rare reversal for Saskatchewan retailers in July. The monthly update on consumer spending habits in this province showed a negative number in July, the first decline we’ve seen in four or five months.

According to StatsCan the dip was a result of lower sales of new vehicles, as overall volumes at retail outlets fell by nearly two percentage points. We’re still in positive territory for the past year – up about two per cent – but this too represents a slowdown from the six or seven points we’d been seeing for most of the year.

Now, one month does not make a trend but there is no doubt that observers will be keeping a close eye on this development as they look for a signal that consumers are changing their ways or losing confidence, particularly on purchases of big ticket items.

But, on the other side of the ledger, given the size of this year’s grain crop we may begin to see a strengthening of spending patterns this fall as cash flow from the agricultural sector finds its way into the economy.

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