- Outlook sales survey 24 vs 30 exp
- Prior 27.0
- Q2 2014 BOC loan officer survey -12.8 vs -10.9 prior
Details from the survey;
- Sales growth expectations remain positive
- Indications that sentiment regarding exports is firming
- Businesses see further US strengthening and see some lagged effects of C$ fall supporting sales expectations
- Many firms yet to see signs of a notable and sustained strengthening in demand
- Sees increase in equipment investment, wait to see widespread signs of better demand
- Exporters that expect more robust near/medium term growth in export demand are considering longer term investments
- Fewer firms expect difficulty in meeting unanticipated demand
- Little change in firms with labour shortage problems
- Firms expect input prices to rise at slower pace as upward pressure form lower C$ dissipates
- Strong competition still to restrain output price hikes
- CPI inflation to stay in bottom half of BOC target range
- Most firms see credit as easy or relatively easy, loan officer report sees further easing in business lending conditions
Full report here
USD/CAD has run up to 1.0676 and into offers around 1.0680
There had been some expectation over the last few quarters that sales activity would pick up but its still slow in coming. Investments are being made but more so on a short term basis and that’s only going to fill the gap for so long.
It’s a story we’re seeing globally with companies seemingly ready and able to pull the trigger on investing but still showing some caution before doing so.
CPI expectations are still in the lower bounds despite the recent data
It’s another report whereby firms are waiting for something to happen before committing their businesses fully
