Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Canadian firms see stronger demand, upward pressure on costs - Bank of Canada survey

10/18/2021 | 11:04am EST
FILE PHOTO: The moon rises behind the skyline and financial district in Toronto

OTTAWA (Reuters) - Canadian companies anticipate stronger demand as the COVID-19 pandemic fades, but many say supply constraints will limit sales and put upward pressure on costs, a regular Bank of Canada survey said on Monday.

The central bank's Business Outlook Survey Indicator reached its highest level on record in the third quarter survey, hitting 4.71 from the 3.96 in the second quarter.

"Positive business sentiment is common across regions and sectors. Most firms continue to anticipate healthy growth in both domestic and foreign demand ... particularly (from) the United States," said the survey.

More firms are facing supply-side challenges such as labor shortages, it added. Supply chain disruptions are more prevalent, and many businesses expect they will continue until the second half of 2022.

"Businesses see these constraints affecting their sales and cost structures. A growing number of respondents plan to increase wages to address challenges in attracting and retaining labor," it said.

"Firms intend to continue passing increases in labor and other input costs on to their customers," it said.

Around 45% of the firms surveyed said they expected inflation to be higher than 3% over the next two years, with half seeing the drivers of that inflation as temporary.

Bank of Canada Governor Tiff Macklem last week said supply chain bottlenecks were not easing as quickly as expected, meaning inflation would take a little longer to come down. The annual inflation rate hit an 18-year-high of 4.1% in August, far above the bank's 2% target.

A separate central bank survey of consumer expectations said Canadians forecast that inflation over the next year would hit 3.72%. This is a record high for the survey.

The traditional business survey of about 100 firms was conducted from Aug. 20 to Sept. 16.

(Reporting by David Ljunggren; editing by Jonathan Oatis)

By David Ljunggren


ę Reuters 2021
Latest news "Economy & Forex"
11:50aREGIONAL VALUE CHAINS : COVID-19 has opened doors towards solid and sustainable growth, after the negative shock
PU
11:49aItaly's business lobby sees economic growth at 6.4% in 2021
RE
11:35aSpain tightens COVID-19 restrictions for British tourists
RE
11:15aIraq says it has no expectations about the fate of OPEC+ supply increase
RE
11:08aJapan Launches Reusable Rocket Project - Nikkei
RE
11:08aJapan launches reusable rocket project; joint initiative with private sector aims to slash costs by more than 75% - nikkei
RE
10:51aTotal Online Spending In U.S. On Black Friday Was $8.9 Bln, Which Is At Low End Of Predicted Range - Adobe Digital Economy Index
RE
10:51aUsage of bnpl so far in november has grown with total spending via bnpl up 422% and volume of orders up 438%. - adobe digital economy index
RE
10:50aSmartphones accounted for 44.4% of all online sales on black friday, which is up 10.6% - adobe digital economy index
RE
10:50aSo far this holiday season (nov. 1 ľ dec. 26), consumers have spent $89.9b and are on track to hit $207b- adobe digital economy index
RE
Latest news "Economy & Forex"