7 Apr 2015
Lower oil prices continue to dampen the overall Canadian outlook – BOC Survey
FXStreet (Mumbai) - The Bank of Canada’s (BOC) spring Business Outlook Survey revealed weaker oil prices continue to "dampen" outlooks for firms, including sales, investment and hiring expectations. Meanwhile, the US economic recovery and lower loonie are boosting Canadian businesses across the board.
The survey mentioned, "Lower oil prices continue to dampen the overall sales outlook of firms, weighing on investment and hiring intentions. However, a majority of businesses are benefiting from the strong economic outlook in the United States and the boost in competitiveness from the weaker Canadian dollar,"
Moreover, the survey noted that there are emerging "signs of spillovers to other sectors and regions."
"Hiring intentions are weaker for most sectors and regions, but especially for firms tied to the energy sector, which plan to reduce the size of their work forces in light of lower oil prices,"
"The survey results indicate that, overall, business-lending conditions were broadly unchanged … but tightened for the oil and gas sector."
The survey mentioned, "Lower oil prices continue to dampen the overall sales outlook of firms, weighing on investment and hiring intentions. However, a majority of businesses are benefiting from the strong economic outlook in the United States and the boost in competitiveness from the weaker Canadian dollar,"
Moreover, the survey noted that there are emerging "signs of spillovers to other sectors and regions."
"Hiring intentions are weaker for most sectors and regions, but especially for firms tied to the energy sector, which plan to reduce the size of their work forces in light of lower oil prices,"
"The survey results indicate that, overall, business-lending conditions were broadly unchanged … but tightened for the oil and gas sector."