Highlights of the Bank of Canada business outlook survey
Prior was +2.8
Firms say sales prospects generally remain positive
Firms expect sales growth to stabilize
Plans to increase investment and employment are widespread, especially in the service sector
Views that labor market pressures have intensified continue to be pervasive, although less so than in Q3 survey
First expect input and output price pressures to rise at a somewhat greater pace than over prior 12 months
Balance of opinion measures:
Sales grew over past 12 months 22% vs 12% prior
Future sales -1.0% vs +15.0% prior
Investment intentions +25% vs +33% prior
Hiring plans +41% vs +39%
Input prices rising +7% vs +26% prior
Output prices +10% vs +12% prior
From the senior loan officer survey:
Credit conditions unchanged for most firms but indicators point to slight tightening
Overall Q4 housing lending conditions unchanged over past three months
Approval rates for mortgage lending were lower in Q4
Inflation expectations roughly unchanged