- BoC's spring business outlook survey: Business sentiment continues to improve in spring
Market news
12 April 2021
BoC's spring business outlook survey: Business sentiment continues to improve in spring
- Firms reported less uncertainty related to coronavirus pandemic and strengthening demand from weak levels
- Nearly two‑thirds of firms indicated their sales have reached or exceeded pre-pandemic levels
- Overall, measure of business outlook increased to +2.87 from +1.3 in winter survey, the highest reading since Q2 of 2018
- Business confidence across all regions has strengthened
- Domestic and foreign sales prospects have picked up from weak levels a year ago, but outlook remains challenging for firms tied to high-contact services
- Measure of future sales increased to +52 from +48 in winter survey
- Many businesses intend to increase their investment spending to meet growing demand and add needed capacity
- Measure of investment intentions over the next 12 months increased to +40 from +26 in winter survey
- Firms’ employment outlooks remain uneven; three-quarters of businesses reported that their staffing levels were not negatively affected by pandemic or have fully recovered, while many of these remaining one-quarter of firms do not expect a full return to pre-pandemic employment levels within the next 12 months
- Measure of hiring intention increased to +45 from +43 in winter survey
- Firms expect positive pressures on growth of their input prices, wages and output prices
- Inflation expectations increased but most remain in BoC's 1-3 percent inflation-control target range
- 55% of firms see inflation running above 2% (42% - 2 to 3% and 13% - above 3%), the highest level since 2018
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