Bank of Canada survey suggests business sentiment picked up after declining

The Canadian economy hit a weak spot late last year as oil prices fell

Business sentiment in Canada has picked up to show a slight improvement after falling earlier this year, according to a new survey by the Bank of Canada.

The central bank said Friday that its summer business outlook survey, which measures corporate expectations, bounced back after falling into negative territory at the start the year.

READ MORE: Bank of Canada identifies climate change as important economic weak spot

“The business outlook survey indicator edged up to its historical average consistent with a slight improvement in business sentiment,” the Bank of Canada said in its latest quarterly survey of senior management at roughly 100 firms.

The business outlook survey, which was done in May and early June, found that following some softness in past sales, businesses expected an increase in sales growth over the coming year backed by domestic and foreign demand.

“Sales optimism is concentrated in Central Canada and includes positive expectations for housing activity. Nevertheless firms anticipate weakness in sales tied to the Western Canadian oil industry to persist,” the report said.

The Canadian economy hit a weak spot late last year as oil prices fell and the country posted its weakest back-to-back quarters of growth since 2015.

The central bank’s spring business outlook survey indicator dropped into negative territory in the wake of that weakness, however recent data has shown an improving economy.

Last month, Carolyn Wilkins, the central bank’s senior deputy governor, said growth was accelerating in the second quarter and should pick up the pace throughout the rest of 2019.

Statistics Canada reported Friday real gross domestic product grew 0.3 per cent in April to kick off the second quarter.

The result was down from a showing of 0.5 per cent in March, but more than the 0.1 per cent economists had expected, according to Thomson Reuters Eikon.

The Bank of Canada’a business outlook survey noted Friday that intentions to increase investment spending and to hire are positive in most regions and sectors.

Reports of labour shortages increased from a low level last quarter, but the bank noted thy were not widespread.

“Firms often reported shortages of skilled or specialized labour,” the report said. “Nearly half of all respondents judged labour shortages to be unchanged compared with 12 months ago, with some indicating that hiring has been difficult for more than a year.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Survivors of abuse at Indian day schools could use help accessing compensation, advocate says

Class-action against federal government now settled but application form to claim funds is rigorous

Black bear spotted at Christy Park in Terrace

Bear could be the same individual spotted on the bench recently

Coastal GasLink breaks ground on meter station in Kitimat

Meter station marks final point on pipeline that stretches from Northeast B.C.

Signs of the times: Terrace sign makers’ businesses evolve during COVID-19 pandemic

Scaife Signs and Silvertip Promotions & Signs Inc. created COVID-19 related materials in Terrace

B.C. records 30-50 new COVID-19 cases a day over weekend, no new deaths

Many of those testing positive were identified by contact tracing for being linked to other confirmed infections

Five B.C. First Nations call out Canada for ‘discriminatory’ food fish practices

West Coast nations say government ignoring court-won right to chinook and coho

Salmon arrive in larger numbers at Big Bar landslide

Arrival follows historic hihg-water levels that halted migration runs

Rent-relief program becomes new front in fight between Liberals, opposition

Opposition trying to draw parallels between decision to have Canada Mortgage and Housing Corp. run program and the WE controversy

Ottawa sets minimum unemployment rate at 13.1% for EI calculation

Statistics Canada says the unemployment rate was 10.9 per cent in July

$45K in donations received after couple’s sudden death in Tulameen

Sarah MacDermid, 31, and Casey Bussiere, 37, died August long weekend

Famous Yukon-based bhangra dancer brings movements of joy to Long Beach

Internet-famous dancer is exploring Vancouver Island, visiting the B.C. Legislature and more

Battle of Fairy Creek: blockade launched to save Vancouver Island old-growth

‘Forest Defenders’ occupy road to prevent logging company from reaching Port Renfrew-area watershed

Most Read