The Bank of Canada's latest business outlook survey found that business confidence is growing as global trade tensions ease.
The survey, which is based on interviews with senior management at about 100 Canadian firms, found that outside of Canada’s energy-producing western provinces, business sentiment has improved markedly since 2019 as foreign demand, particularly from the U.S., continues to lift exports and expectations for U.S. economic growth have improved, while trade tensions have abated.
The Bank of Canada’s "Business Outlook Survey" also found that labour shortages are a key obstacle to Canadian businesses meeting an unexpected rise in demand, except in the Prairie provinces where businesses continued to report limited capacity pressures.
At the same time, the Bank of Canada's new "Survey of Consumer Expectations" found that Canadians' expectations for wage growth over the next year held steady near 2%, just below their expectations for inflation.
The new consumer survey also found mixed signals about the labour market as Canadians saw both an increased chance that they will leave their job voluntarily during the next 12 months and an increased probability that they will lose their jobs in the coming year.
