Today, the Bank of Canada released its Business outlook survey. According to National Bank of Canada’s analysts, Krishen Rangasamy, it added to evidence that the Canadian labour market is at full employment.
Key Quotes:
“Firms are in upbeat mood according to the Bank of Canada’s Autumn edition of the Business Outlook Survey, the latter’s aggregate indicator remaining near all-time highs. A higher proportion of firms (compared to last summer’s survey) expected sales growth to increase over the next year thanks in part to optimism about export growth particularly amid strong U.S. demand.”
“The balance of opinion on the intensity of labour shortages surged to a 12-year high. That, coupled with earlier reports of skills mismatch adds to evidence that the Canadian labour market is now at full employment.”
“Note that the Business Outlook Survey was conducted from August 23rd to September 17th, or before the USMCA trade deal was struck. So, the largely positive results likely understate the current enthusiasm of Canadian firms.”
“The Bank of Canada would be justified by the data to step up monetary policy normalization.”
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