According to Export Development Canada’s semi-annual trade confidence index, Canadian exporters are slightly more confident than six months ago, thanks to rising global demand for their products and an increase in new contracts.
EDC chief economist Peter Hall said, “Canadian exporters are remarkably upbeat, considering the fluctuations in the world economy.
“Export sales are threatened by volatile commodity prices, a high dollar, political turmoil, natural disasters and sovereign debt worries. With all the external concerns, it’s no surprise that Canadian exporters are finding refuge in the solid domestic economy.”
The EDC saw confidence scores rise to 76.2 in the spring of 2011, up from 74.1 in the fall of 2010.
The survey indicates more Canadian exporters anticipate increased export sales, and are more confident in international business opportunities. Exporters also remained bullish about the domestic economy.
Although current conditions vary by industry, most industrial sectors showed increases in trade confidence between the fall of 2010 and spring of 2011. Those registering the largest gains were the infrastructure-environment, transportation and resources industries.
The report also noted that the U.S. remains the market leader for Canada's exports, with almost nine out of 10 respondents reporting that their companies sell to the U.S.
In addition to the U.S., Canada’s export destinations continue to be concentrated in developed markets: the United Kingdom, Germany, France, Italy, Spain, Japan and Australia.
The data also showed a slight but steady increase in expected sales to non-traditional markets, with Latin America and Asia showing increasing signs of importance to foreign sales over the next six months.
Jennifer Harrison
Twitter: JHarrisonBIV