The Bank of Canada has recently published its Business Outlook Survey for the second quarter of the year, with key highlights, via Reuters, found below.
- Some expectation of moderation in pace of sales growth, but sales outlook remains robust.
- Capacity pressure indicator rose, firms citing significant difficulties meeting an unanticipated increase in demand hit levels not seen since before 2008-09 recession.
- Labor shortage indicators point to tighter labor markets.
- Investment intentions slightly weaker, still driven by sustained demand and intensifying capacity pressures.
- Almost all interviews conducted before may 31 announcement of U.S. Steel and aluminum tariffs.
- Firms anticipate strong growth in U.S. Economy, but several firms face headwinds of capacity constraints, competition, and trade barriers.
- Firms expect faster input price inflation, but majority expect inflation within upper half of BoC’s inflation target range.
- Most firms report no change in credit conditions.
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