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Canadian businesses believe an economic recovery has yet to start

Executives of Canada's private companies remain optimistic about the country's economic outlook for 2010, but more than half believe the recovery is still months away.

Executives of Canada's private companies remain optimistic about the country's economic outlook for 2010, but more than half believe the recovery is still months away.

About 72% of respondents to Grant Thornton's business report said they were either "very" or "slightly" optimistic about Canada's economic outlook over the next 12 months. About 35% believe the economy will turn around in the second half of 2010, while 22% believe the recovery will take place in 2011.

Western Canadians were the most optimistic about the economy with 84% saying they were either very or slightly optimistic about the next 12 months.

Over half of respondents said they expect an increase in their company's revenue this year, while 49% expect to see an increase in profitability. A third of respondents expect access to capital to become easier over the next 12 months and 37% believe it will remain roughly the same.

About 41% said they plan to invest more money in plants and machinery, although 56% expect employment levels to remain flat.