While Regina’s top executives remain optimistic about the local economy, the latest report from Economic Development Regina shows there is a slight drop in confidence.
The survey asked participants questions about the greater Regina area (GRA) and while there was a 21 point drop from the first quarter report, it remains eight points higher when compared to last year’s outlook.
“There are many factors that are playing into the Saskatchewan economy and our business leaders current confidence,” said David Froh, vice-president at Economic Development Regina, in a news release.
“There remains a lot of positivity about what is happening in our own backyard, but there are overarching concerns with factors, such as NAFTA negotiations, which does play into how executives are feeling.”
The decrease in optimism is reflected by business leaders now responding they believe the economy will remain stable and stay the same over the next year.
Currently, 47.9 per cent of respondents believe the economy will improve in the next 12 months, while 43.8% predict it will remain the same.
“It is encouraging to see continued, above average confidence from GRA executives although we need to be aware that the survey was completed prior to the discussions on Tariffs to the steel industry,” said Valerie Sluth, managing principal at Praxis Consulting, in a release. “We have a lot of economic opportunities in the GRA, such as the Protein Industries Canada super-cluster, which help to balance out the uncertainty felt by other economic factors.”
It is thought the soft labour market numbers, high commercial office space vacancy, stabilized oil prices, recent major events held in Regina and the successful super-cluster bid from Protein Industries Canada were factors in the survey results.