This quarterly survey poses ten qualitative questions regarding the business climate and investment intentions to senior officers of approximately 150 large Canadian businesses. Responses to three select questions are used to construct the Index.
Document Highlights
For the first time, the business confidence index has jumped by more than 20 points in two consecutive quarters. Following a 25-point jump in the fourth quarter, the index has climbed an additional 24 points, to 141.5. While Canadian firms are now brimming with optimism, the survey still indicates that industry is operating below capacity.
- One of the main reasons for the rebound in business confidence was an improvement in how firms viewed the economy.
- The number of respondents that believe the economy will be better than it was in the fourth quarter hit 71 per cent – the largest number since the second quarter of 1997.
- This outstanding bounce-back in confidence bodes well for future investment expenditures.
