If you work in the technology sector, take heart - consumers are buying tech.
Market research firm NPD Group reviewed Canadian's tech spending in the first four months of 2010 and found total spending was only down 2 per cent at $3.2 billion.
"Technology is now ingrained in our daily lives and these things are no longer seen as optional," says Darrel Ryce, director of information technology and entertainment.
"This most recent data shows that even during periods of economic uncertainty, Canadians are willing to upgrade or replace these products."
PricewaterhouseCoopers' annual predictions for entertainment and media agrees.
"The uncertain economic background has done nothing to slow the pace of change, which has been far quicker than predicted 12 months ago," the report reads. "The consumer is in the driving seat."
PwC predicts Canadian spending on mobile devices, such as smartphones, will rise sixfold over the next four years. Growth in media and entertainment spending will rise five per cent for each of the next five years.
Ottawa companies enable this communications expansion. Alcatel-Lucent, Dragonwave, BTI Systems, Ciena, Enablence, Mitel, and Bridgewater Systems are just a few. Canadian Blu-Ray DVD players sales were up 56 per cent, TV sales up 20 per cent and camcorder sales up 12 per cent.
Ryce notes that in both Canada and the U.S. video gaming sales have tumbled, 15 per cent here, 11 per cent in the U.S.
He expects new games and new consoles to produce a rebound later this year.
"Canadian consumer confidence is trending upwards. It is still a bit erratic but better than in the U.S."
"Using the Internet is now one of the great unifying experiences for consumers everywhere," PwC concludes.
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This Sunday on TECH NOW: young children and social networking.
