Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Canadian Business Confidence Jumps to Highest in Six YearsTuesday, February 01, 2011 > 16:16:51
Canadian business confidence jumped to its highest level in six years in the fourth quarter, with executives predicting the economy will strengthen in the year ahead, according to a new survey.
The Conference Board of Canada’s Index of Business Confidence rose to 101.9 in the fourth quarter from 109.5 in the third. More than half of business leaders expect economic conditions to improve over the next six months, with only 11.1% saying they believe things will worsen.
Business leaders said they expect substantial increases in investment spending, according to the survey, which was carried out over four weeks in December and January.
Canada’s economy put in its best performance in eight months in November, with gross domestic product expanding by 0.4%, double the pace of the previous month. Most sectors of the economy showed an improvement, though trade continues to be a drag, with the strong loonie and shaky external demand weighing on imports.
Respondents were also bullish on corporate balance sheets, with 61.1% saying they expect their firm to be more profitable in six months’ time. Only 6.9% said they foresee a decrease in profitability, the balance of opinion on this question soared to 54.2, a level not seen since the second quarter of 2002.