Financial institution of Canada enterprise outlook survey: Total sentiment is subdued


  • Future Gross sales Expectations at +31% vs +13%: Improved outlook with stronger demand anticipated, boosted by rate of interest cuts (highest since Q2 2021)
  • Extra widespread plans to extend funding, properly above historic common
  • Recession expectations at 15% vs 16%
  • Additional easing in capability constraints, labor shortages much less intense
  • Labor shortages amongst lowest in survey historical past (ie, there isn’t a labor scarcity)
  • 70% of companies planning normal-sized wage will increase
  • Barely greater however nonetheless between 2.5-3% vary

Some key factors:

  • Affect of US election turning into a key concern (40% anticipate unfavorable results)
  • 4 rate of interest cuts occurred between June and survey interval
  • Corporations more and more centered on strategic pricing and affordability
  • Oil & gasoline sector displaying strong outlook as a consequence of TMX pipeline and LNG Canada

That is higher than I used to be anticipating given all of the tariffs fears. It was performed after the US election from Nov 7-27, although that does not seize the peak of Trump’s threats in opposition to Canada.

Full report

Some charts:

This could give the Financial institution of Canada some confidence that the rate-cutting cycle is starting to work.

This text was written by Adam Button at www.forexlive.com.



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