Page 14 - 2025 GBC spring English

Economic Uncertainty Amplifies: It’s Back to the Future
Q. Thinking about the current situation, please indicate how much you agree or disagree
with each of the following statements?
T O P 3 B O X A G R E E M E N T
I'm more budget conscious today than I was two years ago
The economy is currently in recession
November ‘24
62% 62%
57%
59% 60% 58% 56%
60%
61%
58% 56%
57% 63%
55%
52%
37% 43%
42%
40% 41%
42%
36% 38%
39%
37% 36%
34%
34% 35%
33%
OCT '23 NOV '23 DEC '23 JAN '24 FEB '24 MAR '24 APR '24 MAY '24 JUN '24 JUL '24 AUG '24 SEP '24 OCT '24
2
after the November U.S. elections,
levels of uncertainty remain
unabated. In the immediate post-
election wave of research, both U.S.
and Canadian golfers surveyed
were still far from convinced that
economic challenges were abating.
In November of 2024, 57% of
American golfers strongly agreed
that they were more budget
conscious than they were two years
prior, a figure that was unchanged
from October of 2023. The same
sentiment was true for 63% of
Canadian golfers. 43% of Canadian
golfers strongly believed that the
economy was in recession, similar
to 37% of Americans who felt the
same.
These economic concerns
created a spike in spending caution,
with 45% and 40% of Canadian
golfers respectively expressing
strong agreement with the
statements, “Today I have to make
more difficult decisions about
discretionary purchases than I did
five years ago,” and “I am spending
less money on multiple items in
response to price increases.” Only
one in five Canadians strongly
asserted that if they saw something
that they liked, they did not worry
about the price.
Inflation was the big driver
throughout the past two years of
our tracking work, and consistently
14
Golf Business Canada
was the #1 concern among a list of over twenty current issues. The
lingering effects of those attitudes are not to be taken lightly. While 50% of
Canadian golfers believe that the cost of every day goods will improve in
the coming months, the last four years have been brutal and continue to
impact outlook and spending behaviour. Asked to compare the six months
prior to the pandemic with current times, 43% of Canadians believe that
prices for consumer items are much higher now, with an additional 35%
saying that they are somewhat higher. So, despite reports that the rate of
inflation is decreasing, that does not mean that prices are getting lower. It
only signifies that the acceleration of increases is slower. In fact, economists
calculated that the average U.S. household needed to earn $11-$14k more,
annually in 2024 to maintain their pre-COVID standard of living.
SO, WHY THE CONTINUED SPENDING DESPITE ECONOMIC
UNCERTAINTY?
One golfer sentiment question that we have asked consistently reveals a
continuing strong belief among golfers that the game is an oasis from the
stresses and concerns of daily life. In early 2025, 59% of Canadian golfers
strongly concur with this. In addition, even after a majority of Americans
mistakenly believed that there would be chaos in the streets and political
uncertainty immediately post-election, some 75% still do not strongly
believe that things are on the right track. 62% remain stressed; unchanged
from pre-election findings, while nearly six in ten believe that they will be
just as stressed a month from now. This incidence is only slightly lower
among Canadian golfers. Throughout North America, golf continues to
be an escape from these pressures.
But there are other economic factors at play that have led to heightened
spending of discretionary dollars on favoured leisure activities and
desired rewards and respites. U.S. Federal Reserve Bank data showed
credit card balances rising again in the third quarter to $1.17 billion—a
record high and up 8.4% vs YAG, and it’s clear that we are splurging on
things that we covet.
Equally telling is our latest data that points to heightened desires for
instant gratification. Golfers who agree that they are living for today is at
a twelve month high of 61%, and this sentiment is particularly acute for
the youngest adults. 57% strongly agree that people today are more selfish
than in their parent’s generation. 72% concur that “It’s important for my