Driving Naari Programme launched in Chandigarh
OTTAWA — The Bank of Canada says it’s detecting early signs of a modest pickup in corporate investment over the near term, even amid considerable uncertainty surrounding the U.S. economic agenda.
The central bank says the signals of a recovery in business investment are starting to emerge after a two-year period of weakness triggered by the oil-price shock.
The bank is releasing the findings along with poll results that suggest Canadian firms, on balance, are more optimistic about the future than they were in January for areas such as sales growth.
The central bank’s latest business outlook survey also suggests when it comes to exports many companies have concerns about the impacts of potential Trump policy changes, including increased protectionism and plans to slash U.S. corporate taxes.
On the other hand, the poll finds that some of the firms surveyed between mid-February and early March saw benefits from the U.S. — with the approval of the Keystone XL pipeline and the overall strengthening of the American economy.
The survey also suggests that companies expect their costs to rise over the next year due to higher anticipated commodity prices, new carbon-pricing regimes in Ontario and Alberta, and the fact past exchange-rate depreciation has been largely built into prices.
The poll results are being released following encouraging data run in recent months for growth, trade and the job market.
