Investing.com - Financial Markets Worldwide
🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

UPDATE 1-Bank of Canada finds business sentiment deteriorated

Published 2016-01-11, 10:49 a/m
© Reuters. UPDATE 1-Bank of Canada finds business sentiment deteriorated

(Adds details on sales expectations, credit conditions)
By Randall Palmer and Leah Schnurr
OTTAWA, Jan 11 (Reuters) - The negative effects of lower oil
and commodity prices have caused business sentiment in Canada to
deteriorate over the last three months, though non-commodity
exporters plan to boost their investment spending, the Bank of
Canada said on Monday.
On a national basis, investment and hiring intentions have
fallen to their lowest levels since 2009, the central bank's
quarterly Business Outlook Survey found.
"Yet, in response to stronger foreign demand, exporters not
tied to commodities plan to increase their investment, supported
by the boost to competitiveness from the depreciation of the
Canadian dollar," it said.
The release was the last Bank of Canada event before its
Jan. 20 interest rate decision, and economists had looked to it
for clues as to whether in the bank's view non-commodity growth
would be enough to offset continued troubles in oil and
commodities.
For hiring intentions, the firms planning higher employment
continued to outnumber those expecting a smaller workforce, but
the margin declined to 12 percentage points from 28 points in
October.
The report also said plans to cut staff were more widespread
and not confined to commodity-producing sectors and regions.
Nonetheless, it found virtually unchanged expectations of
future sales growth, with 47 percent expecting greater sales
growth and 31 percent foreseeing less.
A separate survey of senior loan officers found that overall
business lending conditions had tightened slightly during the
fourth quarter but that this was almost exclusively concentrated
in the oil and gas sector.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.