Sentiment remains positive in Canada’s Q1/18 Business Outlook Survey

The Bank of Canada’s Q1/18 Business Outlook Survey struck a positive tone once again. Future sales and employment intentions ticked higher. Measures of capacity pressures — businesses’ difficulty meeting demand and reports of labour shortages — edged lower but remained high. Machinery & equipment investment intentions ticked lower but to a still above-average level. To be sure, the report was not without grey clouds. ‘Competitiveness’ issues — tied to US tax cuts and regulatory differences versus trading partners — were directly mentioned five times by our count. 

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