Bank of Canada Q4 2016 business outlook survey highlights
- Future sales index +26.0
- Prior futures sales index +12.0
- Positive investment intentions evident in all regions
- Firms generally more optimistic about sales prospects
- Many firms expressed concern about rising protectionism
- Employment +31 vs +21 prior
- Investment +24 vs +18 prior
Here were the highlights of the Q3 report. USD/CAD was trading at 1.3237 ahead of the release.
There was talk about more upbeat spending plans from energy producers and how that could filter into the survey but it was even better than that with widespread optimism on investment and hiring.
"Business prospects have improved following two years of overall modest activity," the report said. "The drag from the oil price shock and related spillovers is gradually dissipating."
Another spot that might catch the Bank of Canada's attention is the survey on input prices, it rose to the highest since Q1 2014. That's the kind of thing that could get the BOC into a more-serious mode on rate hikes.
Here is what the survey had to say on the United States:
"Uncertainty about the outcome of the US election, which affected the autumn survey, has given way to uncertainty about the measures that will be put in place by the incoming US administration and their impact on Canadian businesses. Firms' views (which in some cases reflect the perspectives of their US customers) are divided: some are optimistic about the prospect of increased infrastructure and military spending as well as changes in energy policies, while others are more pessimistic, often because of the risk of increased protectionism."
