Canadian businesses are reaping the benefits of an improved economy, according to the Bank of Canada’s summer business outlook survey.
For the first time in two years, more firms reported an improvement in sales growth during the past 12 months than those reporting a decline.
More than half also expected sales to increase during the next 12 months.
Firms expecting improved sales growth were mainly those still waiting for a recovery or which saw a modest improvement over the past year. Firms that already experienced a strong recovery, however, generally expect sales growth to slow to a more sustainable pace during the next 12 months.
Concerns about the recent uncertainty in the global economy are impacting company decisions to invest in machinery and equipment. The proportion of firms in the service sector thinking of buying equipment fell primarily because they already made an investment and do not plan to make another over the next year. Investment intentions remained strong for companies in the capital-intensive goods sector.
The survey provided good news for those looking for work.
About half of respondents plan to increase staff numbers during the next 12 months. This positive sentiment was widespread across all regions of the country and for most sectors.