Alex Fallon, President and CEO of the Saskatoon Region Economic Development Authority released SREDA’s Q3 2018 Economic rating as a B-. He reports that economic indicators for Q 3 2018 suggest the local economy is leveling out. Unemployment has increased to 7.2 % but net jobs created grew to 5000 for 2018. The housing market continues to correct due to lower demand, with residential starts and permits down again this quarter, but commercial building permits remain strong. So while growth forecasts for Saskatchewan have been trimmed down to 1.6 % for 2018, they have been raised to 2.2 % for 2019; on the basis that job growth will continue and consumer confidence will strengthen.
Despite depressed crude prices, wet harvest conditions and high steel and aluminum tariffs, the outlook for Saskatchewan industry is looking up. Recent news has highlighted some of the upcoming opportunities for the region with the announcement of the new LNG project in BC, new exploration incentives for the mining sector, and cannabis legalization opening doors for new manufacturing facilities.
Taylor McCallum, Business & Economic Specialist, SREDA
In the wake of the USMCA agreement, increased certainty around the export climate has positively affected the mindset of many businesses even if steel aluminum tariffs persist. After downward revisions to economic forecasts over the summer the trends have turned positive once again with growth of 2% and upwards forecast for 2018. It will take time for business owners to recover full confidence in the economy though, particularly with lingering issues with pipeline and resource development.
Keith Moen, Executive Director, NSBA
Residential home sales in Saskatoon and region for the first 3/4 of 2018 R on par with the same. as compared to 2017. inventory levels have declined by 2% with just over 3100 active listings at the end of September pricing has experienced this slight decline year over year of 4% in the city Saskatoon is not immune to the impact of a challenging economy but has overall weathered the storm reasonably well when compared to other western cities.
Jason Yochim, CEO, Saskatoon Region Association of Realtors
All indicators point to strong results for the tourism sector in Q 3 of 2018. Convention and sports sales exceeded full year targets before the end of the quarter. Airport passenger volumes hit historic record levels in each of the past 7 months, with associated strong room sales for the accommodation sector.
Todd Brant, President and CEO, Tourism Saskatoon
To read the complete third quarter Economic Rating Report go here!
I would be interested in hearing your comments and analysis of this information, call me at 306-280-0989, look forward to talking with you soon.