Business confidence in Alberta dips
August 28, 2012
Business leaders throughout Alberta aren’t feeling as confident in economy as they were earlier this year.
According to a recent report by Pricewaterhouse Cooper which surveyed members of the Calgary Chamber and the Edmonton Chamber of Commerce, confidence in the economy has been slipping since March of this year. That includes a drop in the outlook for current and future business conditions, as well as a dip in consumer confidence when it comes to areas such as buying a house or a major household item, and future household income.
This drop marks a change in events, as both business and consumer confidence levels had previously been showing steady increases since September 2011
“Despite Alberta’s strong economy and low unemployment rate, confidence has levelled off,” says Ben Brunnen, chief economist with the Calgary Chamber, who pointed to challenges in Europe and a slowing in Chinese economy as two developments contributing to this loss.
“People are watching what’s happening in the world right now, and they getting concerned those developments might eventually spill over into Alberta,” Brunnen added.
However, despite the recent drop in business confidence, the Pricewaterhouse Cooper’s report noted that levels are still on par with what was reported in 2011 and consumer confidence is looking good when compared to previous years.
In fact, consumer confidence is at 111 points, which is down from 116 earlier this year, but up from 109 in 2011 and 107 in 2010. (An index score above 100 represents an optimistic sentiment, while a score below 100 represents a pessimistic feeling.)
The Pricewaterhouse Coopers’ report surveyed 215 Alberta business leaders through an online questionnaire and another 900 Albertans via telephone between July 16 and July 22. The margin of error is plus or minus 3.3 per cent, or 19 times out of 20.