Bank of Canada Q2 business outlook future sales -35.0 vs +22.0 prior

Author: Adam Button | Category: Central Banks

Bank of Canada business outlook survey highlights

  • Prior was 22.0
  • Overall business outlook survey -7.0 vs -0.7 prior (revised to -0.5)
  • Survey interviews from mid-May to early June
  • BOC says survey suggests sentiment is strongly negative in all regions and sectors because of the pandemic and drop in oil prices
  • Businesses expect weakness in domestic and foreign demand to continue
  • Businesses in most regions and sectors intend to significantly cut their investment spending
  • Half of exporters expect sales abroad to decrease over next 12 months
  • Credit conditions have tightened significantly but gov't measures a helpful offset
The BOC also launched a separate survey of consumer expectations and noted that 1-year inflation expectations increased slightly to 2.8% vs 2.5% prior. The BOC says that may reflect a rise in food prices.

The BOC asked a special question in the survey. To what extent do you think your sales/workforce will be back to pre-COVID-19 levels in the next 12 months?


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