Ottawa – Business sentiment improved significantly in the second quarter of 2013. The Conference Board of Canada’s survey-based Index of Business Confidence jumped from 91.3 in the first quarter to 101.5 — its highest level in over a year.
Higher capacity utilization rates and improved financial positions were the primary factors behind the increase. Respondents were encouraged by the near-term outlook for their firms and for the economy as a whole, leading many to say they expect substantial increases in investment spending.
Business leaders in Canada believe that the economy will strengthen in the coming months, with 36.8% saying they expect general economic conditions to improve over the next six months. That is up from just 26.9% the previous quarter. Only 5.3% said they expect conditions to worsen — the lowest share since the middle of 2010.
The survey was conducted over a four-week period in May and June.