Highlights of the Bank of Canada's Q2 2018 business outlook survey
Prior future sales was +16%
Some moderation in expectations for sales growth
Capacity pressures rose, with firms citing significant difficulty in meeting an unanticipated increase in demand
Labor shortage indicators point to tighter labor markets, firms say shortages more intense than 12 months ago
Investment intentions slightly weaker
Almost all interviews conducted before May 31 US tariffs
Firms expect faster input inflation but majority see it within BOC range
Firms anticipate strong growth in US economy
Survey data:
Sales growth +29% vs +20% prior
Investment intentions +17% vs +24% prior
Hiring plans +51% vs +45%
Capacity pressures (some or significant pressure combined) 57% vs 47% prior (highest since 2007)
Labor shortage 34% vs 26% prior
Looking at the details here, this is much more bullish than the initial headline. The BOC is going to hike on July 11 unless there is a major surprise between now and then.
Here's the BOC's chart on capacity pressures:
