BoC survey: 24% of firms reported outright decline in sales over previous 12 months, down from 28% in Q1.

BoC survey: 24% of firms reported outright decline in sales over previous 12 months, down from 28% in Q1.

The Bank of Canada (BoC) has released its latest survey, revealing that 24% of firms reported an outright decline in sales over the previous 12 months, a drop from 28% in the first quarter. This decrease, while still significant, indicates a slight improvement in sales performance compared to the earlier period. The survey, conducted in June 2025, provides valuable insights into the ongoing economic challenges faced by businesses in Canada.

The BoC survey highlights that while the percentage of firms reporting sales declines has decreased, the overall economic uncertainty continues to weigh on businesses. The survey also noted that a majority of firms expect the economic conditions to remain challenging in the coming quarters, with many attributing this to ongoing tariff fluctuations and global economic instability.

The promotional products industry, as reported by ASI Research, experienced a decline in sales for the second consecutive quarter in Q2 2025, down 3.2% year-over-year [2]. This downturn was largely attributed to tariff uncertainty and economic hesitation, with small and mid-sized distributors being particularly hard hit. However, the industry remains cautiously optimistic, with many distributors expecting delayed client projects to materialize in the third and fourth quarters, driven by pent-up demand and improved year-end projections.

Taiwan Semiconductor Manufacturing Co. (TSMC), a key player in the semiconductor industry, has seen its market value surge to over $1 trillion, driven by strong demand for artificial intelligence (AI) and high-performance computing. Despite this growth, TSMC's CEO, C.C. Wei, acknowledged the potential impact of tariffs on the industry, noting that while AI demand remains strong, there are uncertainties and risks associated with tariff policies [1].

In conclusion, while the Bank of Canada survey indicates a slight improvement in sales performance, the ongoing economic uncertainty and tariff fluctuations continue to pose challenges for businesses. The promotional products industry, despite recent sales declines, remains cautiously optimistic about the second half of the year. Meanwhile, TSMC's market value surge underscores the resilience of certain sectors in the face of global economic challenges.

References:
[1] https://www.morningstar.com/news/marketwatch/20250717198/taiwan-semi-joins-the-1-trillion-club-after-profit-beat-hiked-sales-outlook
[2] https://members.asicentral.com/news/industry-news/july-2025/promo-sales-drop-for-second-consecutive-quarter-but-optimism-up-for-rest-of-2025/