Enterprise Outlook Survey—Autumn 2019 – Financial institution of Canada

Enterprise Outlook Survey—Autumn 2019 – Financial institution of Canada

Enterprise exercise

The steadiness of opinion on previous gross sales development continues to be just under zero, which suggests a slightly slower tempo of gross sales development previously 12 months in contrast with the earlier 12 months (Chart 1). The weak point in previous gross sales was most typical within the Prairies and is anticipated to persist as challenges within the power sector spill over to different sectors within the area. Consequently, the general steadiness of opinion on the indications of future gross sales is at a subdued stage (Chart 2, purple line), which suggests reasonable gross sales development forward. Nonetheless, gross sales prospects are optimistic for companies outdoors the Prairies, notably these in Quebec. Immigration and powerful exercise within the info know-how and non-residential building industries are anticipated to help gross sales. The steadiness of opinion on future gross sales development is optimistic (Chart 2, blue bars), as respondents count on gross sales to extend at a higher fee over the subsequent 12 months. Nonetheless, for a number of companies, usually these tied to the power sector, optimistic expectations mirror that they anticipate their gross sales will now not fall or will get better barely.

Chart 1: Previous gross sales development

* Proportion of companies reporting quicker development minus the proportion reporting slower developmentFinal statement:

Chart 2: Future gross sales development

* Proportion of companies anticipating quicker development minus the proportion anticipating slower development

† Proportion of companies reporting that indicators have improved minus the proportion reporting that indicators have deterioratedFinal statement:

Chart three: Funding intentions

* Proportion of companies anticipating larger funding minus the proportion anticipating decrease fundingFinal statement:

Chart four: Employment intentions

* Proportion of companies anticipating larger ranges of employment minus the proportion anticipating decrease ranges Final statement:

Chart 5: Capability pressures

 
Final statement:

Chart 6: Labour shortages

* Proportion of companies reporting extra intense labour shortages minus the proportion reporting much less intense shortagesFinal statement:

Chart 7: Enter costs

* Proportion of companies anticipating higher worth will increase minus the proportion anticipating lesser worth will increase Final statement:

Chart eight: Output costs

* Proportion of companies anticipating higher worth will increase minus the proportion anticipating lesser worth will increaseFinal statement:

Chart 9: Inflation expectations

Final statement:

Credit score circumstances

Most companies proceed to report no change in credit score circumstances over the previous three months. Nonetheless, the steadiness of opinion on credit score circumstances is once more barely unfavourable (Chart 10), indicating that phrases and circumstances for acquiring financing have eased marginally. Companies usually attributed the easing to competitors amongst banks. Experiences of tighter credit score circumstances come predominantly from companies within the Prairies.

Chart 10: Credit score circumstances

* Proportion of companies reporting tightened phrases and circumstances minus the proportion reporting eased. For this query, the steadiness of opinion excludes companies that responded “not relevant.”
Final statement:

Chart 11: BOS indicator

Final statement:

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