Less Optimism in Canadian Business
The Bank of Canada released its Business Outlook Survey today with results showing less business confidence. Conducted from August 22nd to September 22nd, the Bank of Canada’s Business Outlook Survey interviews 100 businesses selected to represent Canada’s overall market.
The confidence slip from the Summer survey is attributed to weaker expectations of US growth as well as the recent uncertainty in global business outlook.
Canadian business activity was actually fairly robust during this period, although businesses have less confidence with future sales with 33 per cent reporting an expectation of sales decline.
Capital investment, in general, is at a balance, with some businesses reporting a plan to invest in new machinery and equipment, while others say they are taking a more cautious approach. Additionally, employment job opportunity, investment and growth is being viewed on a more positive scale with 52 per cent reporting an intention to increase employment, although figures have declined since earlier surveys.
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Production capacity and operation pressures for businesses have declined. This is specifically related to Central and Eastern Canada reporting a slowing down of such pressures. On the other side, the Business Outlook survey reported that 25 per cent of businesses answered they would be restricted when meeting a significant change in demand by current labour shortages in Canadian business.
In pricing and inflation, the survey results point toward good news with most businesses claiming they do not see any foreseeable changes occurring in the next 12 months. Credit conditions for businesses have also remained mostly unchanged as 65 per cent of businesses surveyed say there has been an overall balance.