The latest Bank of Canada Business Outlook Survey reveals optimism, despite economic turmoil in Europe and a slow recovery in the U.S. The survey was conducted with senior managers of 100 businesses selected in accordance with the composition of Canada's gross domestic product.
Survey highlights include:
49 percent of those surveyed say that their firms’ sales volumes are greater than in the previous twelve months, compared to only 22 percent in the first quarter of 2010.
50 percent expect their firms’ levels of employment to be higher in the next twelve months than in the previous year. The last three quarterly survey results have remained consistent, with about half of respondents expecting an increase in employment – the highest since the last half of 2006 and early 2007.
47 percent of survey respondents expect that prices of goods sold will increase at a greater rate in the next twelve months, which is a reflection of opinions that cost of goods purchased will also rise.
As for inflation, the majority still believes that it will remain at one to two percent, although momentum seems to be shifting. More firms (45 percent, up from 40 percent last quarter) now think that the rate of inflation in the coming year will be two to three percent.
For potential homebuyers and owners worried about job stability or securing employment, the numbers are promising, with half of business leaders surveyed expecting their employment numbers to rise and only ten percent suggesting they will reduce their workforces.
The Bank of Canada key interest rate is rumoured to rise on these signs of confidence. For those wanting to beat the interest rate heat, the Globe and Mail offers these tips from Investopedia.com: