Close X
Wednesday, November 27, 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

    Extreme Cliff-Jumping Sport Described As Meditative, Spiritual Activity

    Extreme Cliff-Jumping Sport Described As Meditative, Spiritual Activity
    The feeling is complete freedom. It's complete responsibility for yourself

    Extreme Cliff-Jumping Sport Described As Meditative, Spiritual Activity

    Calgary Toddler OK After Falling Into Septic Tank At Tourism Saskatchewan Centre

    Calgary Toddler OK After Falling Into Septic Tank At Tourism Saskatchewan Centre
    A Calgary family says they are still upset after their youngest child fell into a septic tank at a highway rest stop in Saskatchewan.

    Calgary Toddler OK After Falling Into Septic Tank At Tourism Saskatchewan Centre

    In Goa, Arvind Kejriwal Wore This Floral Crown And Twitter Is Losing It

    In Goa, Arvind Kejriwal Wore This Floral Crown And Twitter Is Losing It
    It's said, if you want to get through to a Goan's heart, make sure there's fresh fish on his or her plate.

    In Goa, Arvind Kejriwal Wore This Floral Crown And Twitter Is Losing It

    Nova Scotia Man Fighting Law Has Parents Removed As Guardians, Province Says Act Invalid

    Nova Scotia Man Fighting Law Has Parents Removed As Guardians, Province Says Act Invalid
    Landon Webb had been fighting to overcome limits on his rights as a person with intellectual disabilities and to have his "mentally incompetent" status overturned

    Nova Scotia Man Fighting Law Has Parents Removed As Guardians, Province Says Act Invalid

    Canadian Move To Bar Genetic Discrimination Wins American Advocacy Award

    OTTAWA — A Canadian senator is the co-winner of this year's second annual advocacy award from the American Society of Human Genetics.

    Canadian Move To Bar Genetic Discrimination Wins American Advocacy Award

    Justin Trudeau Welcomes Mexican President To Canada, Saying Much To Talk About

    Justin Trudeau Welcomes Mexican President To Canada, Saying Much To Talk About
    Trudeau greeted President Enrique Pena Nieto on arrival at Toronto's landmark Casa Loma castle before hosting a banquet attended by about 300 guests.

    Justin Trudeau Welcomes Mexican President To Canada, Saying Much To Talk About