BoC Business Outlook Survey: Investment and employment indicators softened from recent highs

"Results from the autumn Business Outlook Survey point to continued positive business sentiment across the country, with business activity becoming entrenched. Firms’ prospects remain healthy, although several survey indicators have moderated from the strong summer results," the Bank of Canada announced on Monday.

Key highlights:

• Responses to the autumn survey reflect expectations for sustained sales growth across regions.
• Investment and employment indicators softened from recent highs, pointing to continued, though somewhat less widespread, plans to increase investment and hiring.
• Difficulties in meeting demand and reports of binding labour shortages are not yet widespread.
• Expectations for growth of input and output prices are stable, as an uptick in costs for labour and non-commodity inputs is offset by the recent appreciation of the Canadian dollar.
• Credit conditions, beyond the increase in the policy rate, are unchanged; for the majority of firms, access to credit remains easy, or relatively easy.
• The Business Outlook Survey indicator, which summarizes the survey results, declined from its high level in the summer survey but remains positive and continues to point to healthy business sentiment.