Many companies consider that the impacts of the pandemic on activity are behind them

“Many companies consider that the impacts of the pandemic in their activities are behind them,” he said on Monday. the Bank of Canada (BoC) in its Business Outlook Survey for the first quarter.

Featured statements – Reuters

“The survey shows continuous improvement in business confidence; outlook indicator reaches highest level since mid-2018.”

“64% of companies indicated that sales reached or exceeded pre-pandemic levels; this is higher than the 52% recorded in the fourth quarter and a sign of recovery is expanding even further.”

“The prospects for domestic and foreign sales have recovered from the weak levels of a year ago, but the outlook remains challenging for companies linked to high-touch services.”

“19% of companies do not expect their sales to return to pre-pandemic levels in the next 12 months.”

“The sales outlook is supported by low interest rates and the shift in consumer preferences for products and services that make it easier for people to stay home.”

“Companies intend to increase investment spending to meet growing demand and add necessary capacity; hiring plans are common for companies with healthy sales prospects.”

“The companies expect positive pressures on the growth of the prices of their inputs, wages and production prices.”

“Corporate inflation expectations rose, but most remain within the Bank of Canada’s 1-3 target range.”

“Inflation expectations decreased over a one-year horizon, rather than reversing the increase observed in the survey for the fourth quarter of 2020.”

“Consumer expectations for house price growth rose again, with Canada’s expected average annual gain now at 5.32%, the highest since the second quarter of 2016.”

Market reaction

The pair USD / CAD It did not show an immediate reaction to this report and was last seen gaining 0.27% on the day at 1.2561.

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