By Paul Vieira
OTTAWA -- Nearly three-quarters of Canadian businesses are optimistic about their prospects over the next 12 months, Statistics Canada said Monday, representing a pickup from readings in the first quarter and last three months of 2023.
The data agency's business-conditions survey suggested 72.1% of firms are either very or somewhat optimistic, up from 68.4% in the first quarter and 66% in the fourth quarter. Among the sectors expressing the most optimism were waste management, hospitality, and construction.
About a quarter of businesses said they expected to increase the prices of their goods and services, roughly unchanged from the prior quarter.
The survey was conducted between April 2 and May 6, Statistics Canada said. Data covering first-quarter growth in Canada are scheduled for release on Friday, and economists expect the annualized expansion to come in between 2% and 2.5%, which would be the fastest pace of growth in a year.
Furthermore, traders expect the Bank of Canada to begin cutting rates either next month or in July.
The survey noted that companies expect to face a series of headwinds related to inflation, higher input costs, and debt financing. Also, 43% of businesses said they expect to face labor-related obstacles, led by recruiting workers and a shortage of labor.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
05-27-24 0937ET
