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Conference Board Predicts Tough Times for Food Sector
Kelsey Johnson Sep 22, 2015
Canada’s food services and food manufacturing industries should anticipate narrower profit margins as a weaker national ecnomy dampens the sectors’ economic outlooks, the Conference Board of Canada said Tuesday.
In two economic outlooks, the Conference Board said slumping oil prices, Alberta wildfires, a colder than usual winter and “the failure of manufacturing exports to pick up as expected” have put a strain on the Canadian economy — which in turn has affected Canada’s food sectors.
For the first time since 2010, the Conference Board said quarter over quarter food services and drinking places receipts declined — this despite “sturdy growth in disposable income” at the start of the year.
Given the current economic environment, the board said, Canadians will likely be more frugal when it comes to eating out.
“Canadian households, worrying about their finances, will likely remain cautious when it comes to their spending, limiting the number of times they dine out or choosing cheaper restaurant options,” the report reads.
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