Bank of Canada business outlook survey suggests uptick in business sentiment

OTTAWA — A new survey by the Bank of Canada suggested that business sentiment in the country has edged higher, but differences between the Prairies and Central Canada have grown more pronounced.

The central bank’s survey of senior management at roughly 100 firms suggested “a slight improvement” in overall business sentiment as businesses expected moderate sales growth in the year to come.

The Bank of Canada says sales expectations were positive in most regions, notably Quebec, but were soft in the Prairies where challenges in the energy sector were expected to persist and spill over to other sectors in the region.

Plans by businesses to invest more were also widespread outside the Prairies.

The overall balance of opinion on hiring intentions came in just below the historical average due to weakness in the energy-producing regions, while businesses in Central Canada and B.C. reported robust plans to add jobs.

The business outlook survey was done in late August and the first half of September. The report comes ahead of the Bank of Canada’s interest rate announcement and monetary policy report next week.

 

This report by The Canadian Press was first published Oct. 22, 2019.

 

The Canadian Press