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Surveys say Canada's business climate improving
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Canada's business sector is primed for a good upcoming 12 months say a pair of Canadian surveys released Monday.
Companies are more optimistic concerning sales and hiring in the coming year as conditions surrounding their ability to borrow more money ease, according to the summer business outlook survey and a sounding of senior loans officers, both studies conducted by the Bank of Canada.
More than 50 per cent of firms asked said they experienced a gain in sales during the past year as compared to 28 per cent which noted a revenue drop during the same period.
"Businesses remain positive about the outlook for the next 12 months, despite more modest expectations for U.S. economic growth," the Bank said its business outlook survey.
In addition, 57 per cent of surveyed firms said they expected to see their payrolls expand during the next year while 25 per cent said they have experienced labour shortages, both sure signs that companies see better economic prospects in the coming months.
Interestingly, more than half of the 100 firms questioned said they would have at least some trouble meeting an unexpected surge in demand for their products or services. And a further 48 per cent said they would increase their purchase of imported machinery, companies which would benefit from the Canadian dollar, which makes imports cheaper.
Finally, respondents questioned for the Bank's survey of senior corporate lending officers said loan conditions had eased considerably for the private sector. Although the Bank measures attitudes based upon a complex of actors, borrowing conditions appear to at their most lenient in at least a decade, the survey of senior loans officers concluded
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