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.

Just Posted

LRCA Concerts in the Park series presents: The Glen Foster Group

Glen Foster Group returns to Transfer Beach for their third Concerts in the Park show, July 28

Ladysmith youth competes at BC Junior Development Track and Field Championship

Nolan Smith is the only Ladysmith member of his track and field club

Tribal Journeys welcomed by Stz’uminus at Shell Beach

Paddlers came from various nations, including the Heiltsuk, Namgis, Hesquiaht, and Alberta Cree

Brits on the Beach raises $2,251 for LRCA food bank

Brits on the Beach also brought in 75 pounds of non-perishable food items

Town adds public access lifering to improve water safety at Transfer Beach

The lifering is easy to use and includes instructions on the protective housing case for emergencies

VIDEO: Young couple found dead in northern B.C. had been shot, police say

Chynna Noelle Deese of the U.S. and Lucas Robertson Fowler of Australia were found along Highway 97

VIDEO: Man found dead near B.C. teens’ truck could be linked to a double homicide

RCMP said they are looking for Kam McLeod, 19, and Bryer Schmegelsky, 18, of Port Alberni

Latest plan is to fly trapped fish by helicopter over Big Bar slide

Multi-pronged plan set in motion to freesalmon blocked by landslide in the Fraser River

Family of missing B.C. senior with dementia frustrated with situation, heartened by community support

Nine days since Grace was last seen the question remains: ‘How can an 86-year-old just disappear?’

Police ask for help locating missing men last seen in South Surrey

Jeep that Richard Scurr and Ryan Provencher were in has been located unoccupied in Logan Lake: RCMP

Islanders have new cancer screening option with $6.5 M diagnostic suite in Victoria

The Gordon Heys Family PET/CT Suite was unveiled at the BC Cancer Centre-Victoria

Unsealed record suggests U.S. man convicted of murdering Vancouver Island couple left DNA on zip tie in 1987

William Talbott is set to be sentenced Wednesday in the murders of Jay Cook and Tanya Van Cuylenborg

Okanagan Air Cadet challenges gender-exclusive haircut policy

Haircut regulation inspires challenge around gender identity

B.C. Ferries crew member’s medical emergency causes cancellations on Nanaimo route

One sailing from West Vancouver and one sailing from Nanaimo cancelled Monday

Most Read