Bank of Canada survey suggests business sentiment picked up after declining

The Canadian economy hit a weak spot late last year as oil prices fell

Business sentiment in Canada has picked up to show a slight improvement after falling earlier this year, according to a new survey by the Bank of Canada.

The central bank said Friday that its summer business outlook survey, which measures corporate expectations, bounced back after falling into negative territory at the start the year.

READ MORE: Bank of Canada identifies climate change as important economic weak spot

“The business outlook survey indicator edged up to its historical average consistent with a slight improvement in business sentiment,” the Bank of Canada said in its latest quarterly survey of senior management at roughly 100 firms.

The business outlook survey, which was done in May and early June, found that following some softness in past sales, businesses expected an increase in sales growth over the coming year backed by domestic and foreign demand.

“Sales optimism is concentrated in Central Canada and includes positive expectations for housing activity. Nevertheless firms anticipate weakness in sales tied to the Western Canadian oil industry to persist,” the report said.

The Canadian economy hit a weak spot late last year as oil prices fell and the country posted its weakest back-to-back quarters of growth since 2015.

The central bank’s spring business outlook survey indicator dropped into negative territory in the wake of that weakness, however recent data has shown an improving economy.

Last month, Carolyn Wilkins, the central bank’s senior deputy governor, said growth was accelerating in the second quarter and should pick up the pace throughout the rest of 2019.

Statistics Canada reported Friday real gross domestic product grew 0.3 per cent in April to kick off the second quarter.

The result was down from a showing of 0.5 per cent in March, but more than the 0.1 per cent economists had expected, according to Thomson Reuters Eikon.

The Bank of Canada’a business outlook survey noted Friday that intentions to increase investment spending and to hire are positive in most regions and sectors.

Reports of labour shortages increased from a low level last quarter, but the bank noted thy were not widespread.

“Firms often reported shortages of skilled or specialized labour,” the report said. “Nearly half of all respondents judged labour shortages to be unchanged compared with 12 months ago, with some indicating that hiring has been difficult for more than a year.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Public gets new opportunity to comment on short term rentals in Agassiz

Decisions on business licence fees, fines and the minimum lot size for STRs are up for discussion

SD78 asks for vaping controls, education

The school district trustees will send a letter to the province on their concerns around vaping

Thanksgiving drive raises 600lb of food for Agassiz-Harrison Community Services

The annual drive is put on by Agassiz’s Red Apple store

Housing concerns prompt decline in Fraser Cascade’s student enrolment

This year saw lower than projected enrolment, likely because of families moving out of the district

‘Re-emerging’ artist takes on Harrison’s Ranger Station residency

Painter Ava P. Christl will be the gallery’s newest artist in residence

VIDEO: Agassiz lights candles in memory of missing, murdered Indigenous women

The Sisters in Spirit vigil took place at the Agassiz United Church

Canucks beat Stanley Cup champs 4-3 in a shootout

Leivo nets winner, Vancouver dumps St. Louis for fourth straight win

‘The more you test, the more you find’: Beef recalls a sign of success, experts say

Despite appearances, experts say a recent rise in major recalls is not a sign of food supply problems

Workers at four Vancouver hotels ratify contract with higher wages, job security

Unite Here Local 40 president Zailda Chan says it’s the first hotel strike in Vancouver in nearly two decades

Japanese buyer expands wood pellet contract with B.C.’s Pinnacle

Mitsui and Co. increases contract with Interior energy producer

ELECTION 2019: Have Justin Trudeau’s Liberals really cut middle-class taxes?

Conservative Andrew Scheer vows to cut bottom bracket, NDP’s Jagmeet Singh targets wealth tax

B.C. RCMP officer suing the force for malicious prosecution

Cpl. Tammy Hollingsworth cleared of wrongdoing after misconduct hearing

UPDATE: Vehicle located and driver arrested in relation to fatal hit-and-run

Male pedestrian in his 50s died after being struck by vehicle on Highway 11 in Abbotsford

Talk to your kids about vaping, B.C.’s top doctor says

B.C. health officials have discovered the first vaping-related illness in the province

Most Read