BoC survey: Inflation expectations are modest, unchanged from third quarter

The Bank of Canada recently published the findings of the business outlook survey for the fourth quarter, with key quotes (via Reuters) found below.

Expectations for sales activity remain positive but point to some moderation ahead.

Indicators of capacity pressures and labor shortages picked up, "reflecting strong demand and tightening labor markets".

Many firms expect stable sales growth or a return to a more sustainable pace, particularly in goods sector.

Firms plan to expand operations to accommodate sustained demand; investment and employment intentions up.

Economic slack now largely limited to energy-producing regions.

Firms expect growth of input prices to rise, owing to gains in commodity prices.

Rising labor costs, often related to upcoming increases in minimum wage as well as non-labor input costs, to put upward pressure on output prices.

Inflation expectations are modest, unchanged from third quarter.

Apart from higher prime rates, credit conditions largely unchanged.

Q4 business-lending conditions eased slightly because of easier pricing conditions; non-price conditions mostly unchanged.