MRO Magazine

Canadian business confidence dropped during the first quarter of 2013

Ottawa - Canadian business confidence dropped during the first quarter of 2013. The Conference Board of Canada’s Index of Business Confidence (IBC) now sits at 91.3, a significant drop from the previous quarter when it rose from 92.3 to...


Ottawa – Canadian business confidence dropped during the first quarter of 2013. The Conference Board of Canada’s Index of Business Confidence (IBC) now sits at 91.3, a significant drop from the previous quarter when it rose from 92.3 to 97.5. That upward momentum was not sustained in the first quarter of 2013, as employment losses and renewed troubles in the Eurozone — this time centred in Cyprus — weighed on business confidence.

Since the recession (when the index fell as low as 68.9), the IBC has struggled to find momentum. The index has not risen more than two quarters in a row since the first quarter of 2012, and the general trend since the start of 2011 has been downward.

This past quarter, investment intentions were down, held back in part by excess capacity.

On a positive note, many of the indicators in the survey did post gains this past quarter, including those related to respondents’ financial positions and profitability.

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When asked to look at the Canadian economy overall, 26.9% of respondents said they believe that economic conditions in Canada will improve in the next six months, up from 24.8% last quarter. However, the percentage of respondents who think the economy will worsen also rose, going from 17.1% to 24.4%.