The balance of opinion indicates only the direction of the change in lending conditions; it does not provide information on the magnitude of the change. It shows lending conditions are easing.
- 78% of firms see sales growth steady or growing in next 12 months compared to 66% in Q2 survey
- Capacity pressures on firms rising in Q3, labor shortages increase
- Hiring intentions 87% vs 91% in Q2
- Balance of opinion of future sales +31 vs +9
- The full Senior loan officer report is here
- The full Business outlook survey
Highlights from the BOC:
- Weak demand and uncertainty regarding future demand continue to weigh on fi rms’ investment decisions and near-term capacity planning, according to responses to the autumn survey
- Businesses reported slower or negative sales growth over the past 12 months. The indicator of future sales has moved up, as firms are generally of the view that sales growth will not deteriorate further over the next 12 months or will modestly improve, yet plans to increase investment and employment have not become more widespread.
- While waiting for evidence of a strengthening in demand before expanding capacity, firms are relying on existing capacity more intensively over the near term. Firms generally consider overall price pressures to be subdued. Inflation expectations remain concentrated within the Bank’s inflation-control range of 1 to 3 per cent, with most firms expecting inflation to be in the bottom half of that range
- Firms cited concerns about persistent weakness in domestic demand as a key factor restraining sales expectations over the next 12 months.
Overall, there are signs of an upturn but nothing overly optimistic.
