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September 29, 2010

Restaurants Hit by HST

The preliminary data are in at Statistics Canada which show that BC's restaurant industry got hit by the HST.

Of five provinces with lower food services sales from June to July 2010, BC had the biggest drop (-1.9%), but on an annual basis looking at July 2010 compared to July 2009, BC had a drop of -2.2% and the only other provinces in negative year over year territory were Nova Scotia and Manitoba with declines of less than two tenths of one percent.

One month does not make a trend, but eyes will be on the monthly food sales data now that the reporting has caught up with the July implementation of the HST. This time next month Statistics Canada will release the preliminary data for August and a revision for July. So far there has been nothing but bad economic news reported as a consequence of implementing the HST: restaurant sales down, real estate hit and prices up.