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David MacDonald, president of Soft Choice, is among the Canadian corporate executives who say demand remains strong.Fernando Morales/The Globe and Mail

Canadian corporate executives are bracing for a potentially broader slump in the markets and the economy, but many say that, so far, they have seen no sign of a serious downturn reflected in their own businesses.

David MacDonald, chief executive officer of Toronto-based technology distributor Softchoice Corp., said his company has seen no softening in demand, despite the escalation of market and economic worries. The bad news from Europe and the United States, and the weak employment numbers south of the border, are certainly creating a lot of fear, he said, but that does not reflect what is going on in the Canadian economy.

Mr. MacDonald noted that overall corporate profits – including at his company and many of his clients – have stayed strong. Until that changes, the state of the markets is a buying opportunity because of discounted stock prices, he said.

Michael Lambert, chief financial officer at Forzani Group Ltd., a sporting goods retailer based in Calgary, said the markets are clearly indicating a concern about a return to recession in the United States. "Everybody senses that that is the issue," he said, "but we're not seeing it in our [sales]numbers."

He noted that the sporting goods sector is not as sensitive to the overall economy as many other businesses. "Little Johnny will play hockey, whether or not the economy is down."

The concern, he said, is that consumers will become so worried about a decline in their net worth – or even losing their jobs – that they will stop spending. "It is this kind of turmoil that causes us concern, but we're not seeing it in our daily sales yet."

Fraser Edison, CEO of Rutter Inc., a Newfoundland-based manufacturer of electronic equipment, said his business, too, still has positive momentum, despite the market worries. "We haven't seen any reflection of this in our business, at this stage of the game, but that's not to say that we're not concerned about what could happen as a result of it."

Mr. Edison said he had hoped the market would "settle down a little bit" after the United States government reached a deal to raise its debt ceiling, "but now with the markets going the way they are, I'm not sure what to think."

Rutter's primary customers are in the United States, so the state of the economy there is key to its success. The company is insulated from any steep short-term downturn because it has projects and contracts already in place, Mr. Edison said, but a longer-term slowdown would be significant concern.

Even in the oil patch, the atmosphere in the field remains buoyant, said James Evaskevich, CEO of Calgary-based junior oil and gas exploration company Yangarra Resources Ltd.

There's a bit of a disconnect between the depressing numbers from the markets and the intense level of exploration and drilling activity out in the field, where companies are "jockeying" for workers and equipment, Mr. Evaskevich said.

Still, he said, "if [the markets]continue to drift, we will revise our budgets."

Many companies have been cautious about borrowing money following the recession, he said, so there is a lot less leverage in the oil patch – and the business community in general – right now. "A lot of us learned some pretty difficult lessons in 2008 and 2009, so I don't sense a lot of folks out there pushing hard on the debt side of the equation," he said.

One key concern in the oil patch is the price of oil, which has slid sharply recently along with the stock market, falling below $87 (U.S.) a barrel Thursday, the lowest level in months. Still, Mr. Evaskevich notes, that price is about $10 higher than where it was at this time in 2010 and "we were making lots of money on the oil side a year ago."

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