Confidence in provincial economy slides

January 13th, 2009 (Saskatoon, SK). A recent independent poll conducted by Insightrix Research indicates three in ten (29.7%) believe the provincial economy will ‘get better’ over the next six months. This is down from two-thirds (67.8%) who held this belief in May of 2008 (based on a similar study conducted by Insightrix Research at that time). The poll, conducted by Insightrix Research, Inc. of Saskatoon was administered by telephone to a random and representative selection of 829 Saskatchewan residents between January 6th and 11th, 2009. The results are considered accurate to within ±3.4 percentage points, 19 times out of 20.
 
More than four in ten (43.5%) believe the provincial economy will ‘remain the same’ over the next six months, while 22.9% expect it to ‘get worse’, up from 9.3% in May, 2008. The remaining 3.9% are unsure. It is of note that this research was completed prior to the recent Mosaic lay-off announcement of more than 1,000 workers at its potash mines in Saskatchewan. While this economic outlook is lower than last May, optimism of the province economy remains stronger than that of the national economy. Presently, one half of Saskatchewan residents (49.7%) believe the Canadian economy will ‘get worse’ over the next six months, while only 20.6% believe it will ‘get better’. Nearly one quarter (24.0%) anticipate it will remain the same and 5.7% are unsure.
 
Tied to this, consumers report some declines in their spending habits. Specifically, 32.3% report having spent less this most recent holiday season on gifts for others, compared to the
previous year, despite a recent report from Moneris (January 9th, 2009) indicating increased spending on credit and debit cards nationally during this time period. Over one half (52.6%)
report having spent roughly the same amount while 14.2% claim to have spent more on gifts for others compared to previous holiday seasons. Men and those with annual household
incomes of less than $30,000 are most likely to indicate they have spent less this past holiday season.
 
Looking to the future, four in ten (39.4%) report they intend to spend less on big ticket purchases and luxury items in 2009. One in ten (10.9%) suggest they will spend more on
these items while one half (49.6%) plan to spend a similar amount on such items as they did in 2008. It is of note that planned spending intentions may differ notably from actual behaviours.
 
About Insightrix
Founded in 2001, Insightrix Research Inc. is a full service market research firm that helps clients develop, administer and manage data collection and information strategies. From their office in Saskatoon, Insightrix offers a comprehensive range of research services.