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Edmonton Businesses Adapting to Volatile Condition

May 12, 2016

EDMONTON, CANADA - A recent survey found Edmonton business owners are adapting to the volatile conditions they continue to face and are feeling less pessimistic about business conditions for 2016 despite the continuing economic downturn.

Completed in early April, the Trend Research survey of 300 Edmonton Chamber of Commerce members found that overall business confidence had increased 10 percentage points, compared to the end of 2015, to 64 per cent from 54 per cent.

A shift in mood was apparent in how some businesses felt when asked about business conditions. In December 2015, only 20 per cent ranked business conditions as positive. By April 2016, that number had increased to 32 per cent. A third—33 per cent—ranked business conditions as neutral.

“The change in mood may indicate that businesses feel they have taken the steps they need to sustain themselves during this downturn, and that they are adapting to the new economic conditions they face,” said Janet Riopel, President & CEO of the Edmonton Chamber of Commerce. “Still, our research shows that most businesses are in a ‘wait and see’ mode and that they remain cautious about making any plans for expansion in 2016.”

Most Edmonton businesses expect staffing levels, employee compensation and prices to remain unchanged throughout 2016. A majority—52 per cent—are also neutral on making capital investments, such as buying new equipment, in 2016.

The impact of the Fort McMurray wildfire may also affect business confidence in the latter part of 2016.

“One factor that businesses could not have anticipated is the devastating wildfire in Fort McMurray,” said Riopel. “The full economic effect of the wildfire is yet to be determined, and it will likely be many months before we understand how it will be felt in Edmonton.”

Business owners were also asked about the provincial government’s projected $10 billion deficit. Edmonton businesses were split on whether the government should run a deficit at all. Of those who supported running a deficit, a large portion—28 per cent—felt one of this scale was too large.

The Edmonton Chamber of Commerce surveys its members quarterly. The survey was conducted by phone and participants were given the option of answering questions by phone or online. The results are considered accurate to within 5.7 percentage points 19 times out of 20.

Media contact:
Sheila Keenan

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