The Bank of Canada (BoC) Business Outlook Survey (BoS) for the third quarter revealed on Monday that business confidence continued to improve with the BoS indicator hitting an all-time high of 4.73, compared with 3.96 in the second quarter.
Featured statements – Reuters
“Most companies continue to anticipate healthy growth in both domestic and foreign demand, especially from the United States.”
“Many companies face supply restrictions that will limit their sales and push up their costs.”
“Demand pressures and supply challenges are driving widespread plans to invest, hire staff and increase prices.”
“Labor shortages are frequent and have intensified since last year; employment intentions remain at record levels.”
“Disruptions in the supply chain are more frequent and have worsened since the second quarter; many companies anticipate that they will persist until the second half of 2020.”
“A growing number of respondents plan to increase wages to attract and retain labor; companies intend to continue to pass on increased input costs to their customers.”
“Compared to the first and second quarters, a higher proportion of companies plan to invest more in machinery and equipment – this is especially true among large companies.”
“45% of companies expect total CPI to exceed 3% over the next two years; half of those companies say the drivers of higher inflation are temporary.”
“Inflation expectations one year into the future rise to an all-time high of 3.72%; the increase is considered temporary.”
“Most of the respondents plan to increase their spending significantly, but remain cautious due to the delta variance.”
The pair USD / CAD It rose slightly from session lows after this release and was last seen trading flat on the day near 1.2370.