A Investment forum. InvestmentBanter

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Go Back   Home » InvestmentBanter forum » Regional » Canada
Site Map Home Register Authors List Search Today's Posts Mark Forums Read Web Partners

Canadian businesses see brighter future, Bank of Canada reports.



 
 
Thread Tools Display Modes
  #1  
Old January 21st 13, 07:12 PM posted to misc.invest.canada,soc.culture.canada,can.atlantic.general,can.general,can.politics
abc
external usenet poster
 
Posts: 14
Default Canadian businesses see brighter future, Bank of Canada reports.

Canadian businesses see brighter future, Bank of Canada reports.


BY GORDON ISFELD, JANUARY 15, 2013

The sales outlook for the next 12 months improved, with 44% expecting
faster growth.

OTTAWA — Canadian companies are offering a glimmer of hope that the
recent slowdown in the economy could soon be behind us.

While sales by Canadian companies were stagnant at the end of last year,
as global growth slowed, the outlook for future business activity appears
to be picking up.

The Bank of Canada said Monday its quarterly survey of companies showed
“further indications that firms have faced a period of softness in
economic conditions.”

The survey — gauging business sentiment in the fourth quarter of 2012 —
found 35% of companies saw sales growth weaken over the past 12 months.
That is up from 27% in the previous quarter.

The improvement reflects how some companies are “pursuing new business
opportunities or adopting strategies to maintain market share in a
challenging ‘demand’ environment,” the bank said.

These companies were primarily in the manufacturing sector and, more
often than not, located in central and Eastern Canada.

Craig Alexander, chief economist at TD Economics, said the survey “is
very consistent with the view that the economy is going to improve in
2013. But the pace of growth is only going to be moderate.”

Meanwhile, the investment picture also improved in the fourth quarter,
the survey found, with 43% of companies saying they plan to increase
spending over the next 12 months — up from 37% previously.

“If businesses are feeling a little bit better about the likelihood of
doing investment, then that’s a positive for the economy,” Mr. Alexander
said.

Still, the survey also found that hiring intentions were little changed.
Only 25% of companies said they were facing labour shortages in the
fourth quarter, compared to 33% in the last survey.

The Bank of Canada surveyed about 100 companies between Nov. 10 and Dec.
13 for Monday’s fourth-quarter results.

RBC economist Nathan Janzen said the central bank will likely take some
comfort in the improved sentiment, “particularly given that the fourth-
quarter survey was collected prior to the partial U.S. ‘fiscal cliff’
resolution in early January 2013.”

“As well, the improvement in the employment index suggests some optimism
that the relatively solid labour market backdrop in recent months could
be maintained early in 2013,” he said in a note to inventors.

Employment in Canada was up by 39,800 in December — pushing the jobless
rate down 0.1 percentage points to 7.1% — after more than 59,000
positions were created in November.

“With that said, improvement in labour market indicators have been at
odds with weak GDP growth, which we expect rose just 1.2% at an
annualized rate in the fourth quarter of 2012 following an even smaller
0.6% third-quarter gain.”

Many economists expect gross domestic product to growth by round 2% for
all of 2013, similar to the Finance Department’s forecast.

The Bank of Canada was more optimistic in its last outlook, pegging this
year’s growth at 2.3%. On Jan. 23, policymakers will provide an update on
the economy in its quarterly Monetary Policy Report, along with its
latest interest rate decision.

The bank’s key lending rate has been stuck at a lowly 1% since September
2010, with policymakers unable to begin hiking borrowing costs with only
moderate economic growth, which has been accompanied by weak inflation.

“I think the real challenge for Canada is the rotation of [economic]
growth. We need to rotate to where we’re getting more growth from exports
and business investment,” TD’s Mr. Alexander said.

“One of the reason growth has been weakening in recent quarters is
because that transition has happened very smoothly, because the global
economy has been very weak.”

In a separate survey released Monday, the Bank of Canada said was little
change in in overall business-lending conditions during the fourth
quarter of 2012.

“This follows several consecutive quarter of easing in credit conditions
for business borrowers,” the bank said.

  #2  
Old January 21st 13, 09:53 PM posted to misc.invest.canada,soc.culture.canada,can.atlantic.general,can.general,can.politics
ConsĐŻcons
external usenet poster
 
Posts: 1
Default Canadian businesses see brighter future, Bank of Canada reports.

On 1/21/2013 1:12 PM, abc wrote:
Canadian businesses see brighter future, Bank of Canada reports.


BY GORDON ISFELD, JANUARY 15, 2013

The sales outlook for the next 12 months improved, with 44% expecting
faster growth.

OTTAWA — Canadian companies are offering a glimmer of hope that the
recent slowdown in the economy could soon be behind us.

While sales by Canadian companies were stagnant at the end of last year,
as global growth slowed, the outlook for future business activity appears
to be picking up.

The Bank of Canada said Monday its quarterly survey of companies showed
“further indications that firms have faced a period of softness in
economic conditions.”

Too bad the average PEOPLE in Canada don't feel the same way as Banks
and 'businesses' feel . . . .
_______________________

The Canadian Press - Tuesday, Jan. 15 2013,


Most Canadians can’t afford to invest in their RRSPs, poll finds

A majority of respondents to a new poll about retirement savings feel
they haven’t invested enough but say they just don’t have the extra
money to put away.

The annual survey Bank of Nova Scotia found that 64 per cent of those
polled cited affordability as an obstacle for them to invest in their
RRSPs by th

That figure is up this year from 59 per cent in 2011 and 53 per cent in
2010.

The poll also found that 81 per cent say they haven’t invested enough,
compared with 76 per cent in 2011 and 71 per cent a year earlier.




 




Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Discovery of a 'Dark State' Could Mean a Brighter Future for Solar Energy shortT Stocks & shares 1 December 18th 11 03:51 PM
Royal Bank of Canada, (RBC Bank) : Corporate Bully Corporate Bully Investing (general) 0 July 30th 08 04:46 AM
Bank of America 3Q Profit Falls 32 Pct the nation's second-largest bank, said Thursday its profit fell 32 percent in the third quarter as trading losses and write-downs on a wide variety of loans offset solid revenue growth in most businesses The ban [email protected] Stocks & shares 0 October 19th 07 05:39 PM
Bank Lending Rates to Businesses Ferger UK 2 November 28th 05 11:30 PM
$6 INVEST IN A BRIGHTER FUTURE [email protected] Stocks & shares 0 July 8th 05 06:20 PM


All times are GMT +1. The time now is 12:20 PM.


Powered by vBulletin® Version 3.6.4
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright ©2004-2018 InvestmentBanter.
The comments are property of their posters.