Sixty-four per cent of executive chartered accountants surveyed expressed optimism about the Canadian economy in the first quarter of 2011, marking a notable increase of 23% over the previous quarter, according to the latest CICA/RBC Business Monitor.
Canadian interest rates and consumer confidence were the top two reasons cited among respondents for the surge in optimism to near record levels. In addition, 66% of respondents were optimistic about their company's prospects over the next year, up 10% from the previous quarter.
Almost half (47%) expected employment numbers to climb at their company over the next 12 months and 22% projected increases of 5% or more.
Only 12% of respondents anticipate that the number of employees in their company will drop, with most of the remaining respondents believing company employment numbers will remain unchanged.
The survey also found that two-third of companies are investing in innovation and the executive CAs expect to see increases in revenue and profits over the next year.
“These latest results reinforce the fact that Canadian companies are ready to seize opportunities for future growth and investments,” says Christianne Paris, RBC’s vice-president of business and client strategy.
“The focus on investment in innovation is particularly promising, as this can be a key driver for opportunities in new markets.”
Based on a survey commissioned by the CICA, the Business Monitor is issued quarterly. The report draws upon business insights of CAs in leadership positions in privately and publicly held companies across Canada.
Jennifer Harrison