Canadian businesses are feeling upbeat about the future and, with worries about their ability to keep up to growing demand, are planning to increase their investment in equipment and technology.
Those are among the major findings of the Bank of Canada’s third quarter survey of business sentiment in the country. The report, tabled this week, was relatively positive even though the data was collected before the new North American trade deal was finalized. In other words, trade uncertainty was still a factor at that time and even in the face of those challenges businesspeople in Canada were upbeat.
They said growing domestic demand, coupled with continued exports, is taxing their ability to keep up. In some regions, labour shortages are a problem as many businesses are running at capacity. The situation is so challenging the business owners said finding ways to keep up to demand was a greater concern than the problems related to unresolved trading rules with the United States and Mexico.
All of this suggests the central bank will maintain its course of raising interest rates.