Canadian exporter confidence has bounced back from one of the lowest points on record last fall, according to an Export Development Canada (EDC) survey released this morning.
EDC's Trade Confidence Index is a semi-annual survey that tracks how Canadian exporters are viewing the business environment for the coming six months. The index measures five parameters: trade opportunities, export sales, domestic sales and domestic and global conditions.
In its most recent reading, the index moved up to 75.9 from 67 in the fall of 2011. According to the EDC, the 75.9 score indicates normal economic conditions.
"It's a relief to see that the index has recovered from last fall's drubbing," said Peter Hall, chief economist for the EDC.
"At the time, the plunge looked like an overreaction to temporary global slowing. Exporters are now seeing a return of growth."
The key indicators that increased on the index showed a reversal in exporter perception that global economic conditions will get worse. They also indicated a significant increase in the number of exporters who believe their export sales will increase over the next six months.
"More than a third of exporters reported increasing U.S. orders, a trend that is expected to continue through 2012," Hall said.
"Interestingly, with all the challenges Europe is facing, exporters are seeing more growth in the U.K., Germany and France – and they expect it to continue."
The survey was conducted in April, with 1,000 Canadian businesses participating.
