Business sentiment drops slightly: BoC survey

A new survey by the Bank of Canada suggests overall business sentiment has weakened slightly, but continues to be positive.

The central bank’s business outlook survey indicator decreased slightly, but remains elevated as responses to almost all the survey questions were holding above their historical averages.

The survey results come ahead of the central bank’s next interest rate decision set for Jan. 9 when it will also release its updated outlook for the economy.

Over the next 12 months, the survey suggested that firms expect sales growth to stabilize, while those linked to western Canadian oil prices and to housing in some regions expect demand to weaken or remain subdued and sales growth to moderate.

The indicator of investment spending on machinery and equipment pulled back slightly, but the survey found intentions are still solid.

On balance, plans to hire more workers continue to be widespread and similar to the previous survey.

The survey based on interviews with senior managers of about 100 firms was done from Nov. 5 to Nov. 28.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.