Bank of Canada survey finds majority of companies expect higher sales in 2017
A new Bank of Canada poll suggests a greater number of Canadian firms expect to benefit from what they anticipate will be stronger post-election growth in the United States.
However, the central bank’s latest business outlook survey also found when it came to exports many companies remained concerned about uncertainty linked to the possibility of new protectionist measures in the U.S.
The poll says that given this uncertainty few firms have factored in the potential impacts from the outcome of the U.S. election into their sales outlooks.
Still, the bank says companies surveyed between mid-November and early December were optimistic about some potential moves by the incoming Trump administration, such as changes to energy policies as well as increases to infrastructure and military spending.
Overall, companies expected faster sales growth over the next 12 months — with considerable support anticipated from areas such as services sectors, housing-related activities and tourism.
The survey also found stronger investment intentions among firms for the coming year, especially in Central and Eastern Canada, as well as more-widespread hiring expectations in most sectors and regions.
“Firms are much more optimistic about the future,” TD Bank economist Brian DePratto said of the report. “The balance of opinion on future sales improved again, and now exceeds the historic average.”
“The healing process continues,” he added. “Today’s report is consistent with an economy that has put the worst impacts of the oil shock behind it.”
Article source: http://www.cbc.ca/news/business/bank-of-canada-business-survey-1.3927338?cmp=rss