Canada: Businesses still relatively upbeat – RBC CM
Nathan Janzen, senior economist at RBC Capital Markets, points out that Canadian businesses remained relatively upbeat in Q4 even after the recent financial market volatility and exceptionally wide discounts on Canadian oil prices.
“Business investment intentions still look solid, supported reportedly by plans to both “increase efficiencies” and expand output. Responses were understandably less positive in the Prairies given lower oil prices although even there investment intentions were reportedly “held up by long-term investment strategies” and plans to “implement new technologies.” Plans to increase employment remained widespread.”
“The survey was relatively upbeat with business investment intentions holding up well despite lower oil prices.”
“There was little change in measures of capacity pressures — which remained elevated — although there was some easing in concerns about those pressures intensifying going forward.”