MRO Magazine

Lack of confidence seen in Canadian business outlook for 2012

Ottawa - Canadian businesses are more pessimistic about the economy and their future prospects for sales at home and abroad, the Bank of Canada says.


Ottawa – Canadian businesses are more pessimistic about the economy and their future prospects for sales at home and abroad, the Bank of Canada says.

A survey of 100 senior managers shows confidence is well off post-recession highs across the board – from sales expectations to investment and hiring intentions, even their ability to pass their costs on to customers.

But executives are most gloomy about sales.

For the first time in almost three years, more firms expect sales growth to slow this year.

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And while it is difficult to say whether business executives are pessimistic because the question posed is relative to the past year, the central bank says the results suggest firms are more worried about selling their products into softer markets.

In the survey, 41% said they expected slower sales, as opposed to 37% that expect an increase. The rest were neutral.

Even respondents in the resource-rich West expect sales growth to slow, albeit coming off a strong performance in 2011, the bank says.

However, more firms plan to add employees in the next 12 months than was the case three months ago, although the balance of opinion remains below the post-slump high.

Analysts say the survey’s results aren’t surprising given concerns about the economy, particularly the near-term impact of the debt crisis in Europe.

The survey found little change in expectations for machinery and equipment investments, something the bank has been urging business to step up to improve woeful productivity.


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1 Comment » for Lack of confidence seen in Canadian business outlook for 2012
  1. sandro says:

    I am an efficiency and quality consultant. Companies I have worked with are launching new products made using new technologies to keep their business alive and excite old customers that have reduced order with them. Also they are approaching new markets with these new products and hope that new customers will also take on their existing bread and butter product lines as well. So far it looks promising for both domestic and foreign markets. ( North america and abroad ). To summarize, in a tight economy you have to push, marketing, advertising and sales efforts to fight for those dollars to be spent. Usually companies cut back in these areas, when they should be investing in them. Otherwise they will be waiting a high tide to come in for their death.

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