Business optimism for 2019 among Canadian manufacturing executives is lower than it was a year ago, according to a new survey.
The survey by RK Insights found that 30% of the 501 respondents were optimistic about business prospects for the year ahead, down from 44% in January 2018. The main reason for the decline in optimism is ongoing trade issues, the survey found.
Specifically, the survey found that 18% of the senior executives are concerned about business prospects for the year ahead, but 51% were cautiously optimistic in a similar level to last year. Looking over a three-year time horizon, 11% were optimistic about growth prospects for Canada, down from 22% last year.
The survey, conducted in August and September before a new North American trade deal was signed, showed an increase in concerns about the effects of U.S. President Donald Trump's trade policies. In all, 65% of respondents were very concerned about U.S. trade protectionism, up from 54% last year, while 61% were very concerned about Trump's impact on bilateral relations, up from 45%.
The Bank of Canada's most recent business outlook survey, conducted in November after the new trade deal had been completed, indicated sentiment had weakened but that responses to almost all of the survey questions were still above historical averages.
