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

  • Full report

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