Most companies in Canada reported stronger investment plans in light of strengthening demand, has pointed out the Bank of Canada (BoC) in its Business Outlook Survey for the fourth quarter, according to Reuters.
Additional comments:
“The companies point to continued recovery, the indicator turns positive for the first time since the pandemic began. “
“Although around half of companies said current sales were below pre-pandemic levels, most companies expect sales to increase in the next 12 months. “
“One third of companies, mostly those that offer high contact services, do not expect sales to return to pre-pandemic levels in the next year“.
“Companies report a increased pressure on input costs, largely linked to more expensive transportation; more companies plan to pass these higher costs into producer prices. “
“Most companies anticipate that the positive impacts of vaccines will not materialize until later in 2021“.
“Many companies producing goods report on pandemic-related supply constraints, such as long wait times to obtain materials from the US or Asia“.
“Businesses expect headline inflation to stay somewhat below 2% for the next two years.”
“Consumer expectations for 1-year inflation increased, rather than reversing the fall observed in the third quarter; this could reflect a rebound in gasoline price growth“.
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