Bank of Canada Survey of Consumer Expectations – Q4 2022

The BOC just released its benchmark Consumer Expectations survey from Q4, and, while the results aren’t necessarily surprising to anyone in the SMB community, they do present some opportunities.

First, the highlights:

  • Consumers have reduced purchases of discretionary items
  • Access to consumer credit has worsened, and real wage growth has declined, further pressuring households
  • Consumers are expecting a mild to moderate recession in the next year
  • While actual inflation has steadied, consumers are bracing for more to come
  • Spending on most items is reducing, largely because of inflation and general malaise in the economy

Read the whole report here.

Next: what should an SMB do about this?

  • Understand that your employees are very likely feeling this uneasiness, and respond accordingly
  • If you sell to consumers – or sell to businesses that sell to consumers – you can likely expect a hit to your sales.
  • If you are forecasting a sales decline, start thinking about sourcing new markets (we can help you here).  Think about augmented services to help you drive new revenue, selling in new territories, expanding your ecommerce capability, and trimming dead-wood products
  • Remember: consumers are cutting back, not cutting off, so stay positive, and keep an opportunity-forward perspective.

If you’d like to chat about opportunities for your business – send us a note below, and we’d be happy to talk: