Bank of Canada Business Outlook 2011 Survey
Yesterday, Jan 10, 2011 the Business Outlook Survey published by Bank of Canada. Here are some notes from the report.
Overall, businesses continue to be positive about the outlook for the next 12 months. While survey responses generally still indicate modest growth, with many firms citing headwinds from strong competition and moderate demand, the strength in commodity prices has led to increased optimism among those firms tied to commodity-related activity.
The balances of opinion on investment and employment continue to be high, supported in part by firms’ efforts to become more competitive and to create new growth opportunities, or by their expectations that demand will continue to improve over the next 12 months. (But what we say is not always what we will do right? Good thing businesses have the positive sentiment, but the numbers also should support it)
Firms expect input and output prices to increase at a greater rate over the next 12 months, but still anticipate that the magnitude of increases in output prices will be contained by competitive forces. Inflation expectations are well anchored within the Bank’s inflation-control range. (That means expect inflation)