The Executive Committee (TEC) Canada has released the second TEC Canada CEO Confidence survey, giving valuable insight into today’s business conditions and tomorrow’s business outlook, as seen by TEC Canada’s business community. The survey consists of 243 responses and reflects small to medium business assessment.
Economist Dr. Peter Andersen, who analysed the survey, points out that this survey is of particular importance given today’s global economic forecast. Keeping in mind the risks from the uncertain future for NAFTA and the threat of an expanding trade war with the United States that Canada’s economy faces, this survey provides valuable insight to the future’s business outlook.
Respondents remain sceptical about economic conditions, with 38% reporting that they believe that there has been no improvement, which is reinforced by the July confidence survey. About 39% if respondents also reported that they expect Canada’s economy to become even worse. This comes as somewhat of a surprise, since Statistic Canada’s official statistics show a respectable growth rate for GDP of 2.3% of Canada’s economy.
At the same time, TEC Canada members aren’t expecting this to negatively impact their own businesses – they are optimistic and report increasing pressure on prices. A whopping 71% of respondents expect their firm’s sales revenue to increase during the next 12 months, and 57% plan to increase their firm’s total number of employees over the same period. This is indicative of their positive hiring intentions. 53% plan to increase total fixed investment expenditure during the next 12 months, where only 10% plan to reduce capital spending (down 5% in comparison to the previous survey).
To read the full report, click here.