Close X
Monday, November 11, 2024
ADVT 
National

Subdued Business Outlook For The Next Year, Bank Of Canada Poll Says

Darpan News Desk The Canadian Press, 04 Jul, 2016 12:47 PM
    OTTAWA — Canadian businesses are anticipating only a minimal acceleration in sales growth over the next 12 months amid bleak expectations among firms linked to the energy industry, a new Bank of Canada poll suggests.
     
    The central bank's latest business outlook survey released Monday said that companies hit hard by the oil price slump reported that indicators of future sales, such as new orders, had seen scant improvement compared to a year ago.
     
    "The moderation in future sales expectations was concentrated among firms in the Prairies, which see few signs of a recovery from the oil price shock," the bank's quarterly survey said.
     
    In other regions of the country, the poll said "steady, albeit modest, domestic momentum" supported brighter sales outlooks.
     
    The survey found that businesses outside the affected commodity industries and in the service sectors were more optimistic about the coming year. Rising demand from the United States and the past depreciation of the Canadian dollar remained key sources of stronger sales expectations, the poll said.
     
    The survey also suggested that overall, firms generally expected to add jobs over the coming year — but found hiring intentions remained below post-recession levels and diverged considerably by sector.
     
    Plans to reduce staff were prominent among companies in the goods sector, while firms in the service industries intended to boost their workforces to meet growing demand, the poll found.
     
    "Hiring intentions remain modest overall," the bank said.
     
    Firms also remained cautious about business investment, with many companies tied to the energy sector budgeting for further cuts, the survey said. However, businesses in the service sectors were found to be more willing to invest and expand, it added.
     
    CIBC chief economist Avery Shenfeld said the survey indicates that the repercussions from the fall in energy prices will continue to be felt.
     
    "We're not out of the woods yet," Shenfeld said in a note to clients. "The energy shock dented Canada over the past 12 months, but the Bank of Canada's latest survey suggests that the tide isn't yet turning back in our favour."
     
    The Bank of Canada's survey of senior managers from about 100 companies was conducted between May 9 and June 8, and therefore doesn't reflect any potential changes in expectations linked to the United Kingdom's referendum to leave the European Union.
     
    National Bank senior economist Krishen Rangasamy said that companies' actual investment and hiring may end up being softer following the result of the so-called Brexit vote than the opinions reported in Monday's survey.
     
    "Intentions to hire and invest remain weak, which does not bode well for economic growth in the second half of the year," Rangasamy wrote in a research note.

    MORE National ARTICLES

    Canada Condemns Suicide Attack At Istanbul Airport That Killed 41

    OTTAWA — Canada is condemning the suicide bombing attack on Istanbul's Ataturk airport that killed at least 41 people and wounded many others.

    Canada Condemns Suicide Attack At Istanbul Airport That Killed 41

    CIBC To Buy Chicago-based Privatebancorp In C$4.9-billion Deal

    CIBC To Buy Chicago-based Privatebancorp In C$4.9-billion Deal
    TORONTO — CIBC is offering to buy Chicago-based PrivateBancorp, Inc. in a friendly deal valued at C$4.9 billion, or US$3.8 billion, as it seeks to grow its presence in the U.S. banking sector.

    CIBC To Buy Chicago-based Privatebancorp In C$4.9-billion Deal

    Justin Trudeau Greets U.S. President, Mexican Counterpart For Three Amigos Summit

    Justin Trudeau Greets U.S. President, Mexican Counterpart For Three Amigos Summit
    "Thanks for the hospitality," Obama could be heard saying to Trudeau, before moving behind a security curtain to sign a waiting guest book.

    Justin Trudeau Greets U.S. President, Mexican Counterpart For Three Amigos Summit

    Uber Canada Drivers To Be Covered Under Ride-hailing Insurance Plan In Alberta

    EDMONTON — Uber Canada says Alberta's new insurance policy for ride-hailing companies is a key step toward it resuming service in the province.

    Uber Canada Drivers To Be Covered Under Ride-hailing Insurance Plan In Alberta

    Pride Marchers In Steinbach, Man., Get Permission To Walk On Street

    Pride Marchers In Steinbach, Man., Get Permission To Walk On Street
    STEINBACH, Man. — Organizers of the first pride march in the heart of Manitoba's so-called Bible Belt say they have won the right to walk on the city's streets.

    Pride Marchers In Steinbach, Man., Get Permission To Walk On Street

    Canadian Navy Rescues Defunct, Unmanned Solar-Powered Kayak Off Newfoundland

    Canadian Navy Rescues Defunct, Unmanned Solar-Powered Kayak Off Newfoundland
    The Solar Voyager set off from Gloucester, Mass., on June 1 in a bid to become the first autonomous boat to make the transatlantic voyage.

    Canadian Navy Rescues Defunct, Unmanned Solar-Powered Kayak Off Newfoundland