Survey finds Canadian business owners optimistic about 2013
January 14, 2013
A new survey conducted by the Bank of Canada asked Canadian firms if they believe that even though they had a rough 2012, they are expecting positive outcomes from 2013. According to CBC News, the quarterly survey indicated that businesses expect a turnaround in the upcoming months, and they also are planning on hiring more workers and increasing investments, which in and of itself can improve the economy.
"Responses to the winter survey provide further indications that firms have faced a period of softness in economic conditions," the bank's statement read."While some forward-looking indicators of business activity have moved up from the levels recorded in the autumn survey, many firms cited concerns about demand over the next 12 months, as well as pressures related to increased competition."
The survey has been considered as one of the best in determining the economy for the next few months. It is a compilation of the answers of 100 senior management personnel in 100 firms in Canada, according to the publication.
The survey showed that the pace of growth of sales last year was lower than the previous, as 35 percent said that their volumes increased at a slower pace in 2012 than 2011. However, 33 percent said the same in 2011 about 2010. The study for this year found that more firms than not said that they expected their sales to increase at a faster pace than they did in 2012, which is promising for the next 12 months, the media outlet reports.
The results of the survey also found that more than 42 percent of respondents said that they expected to hire more employees this year, whereas 14 percent indicated that they thought they would have less employees by the end of the year. Also 43 percent said they plan on investing, compared with 37 percent from last year, according to the news outlet.
What ends up happening economically in the next few months has yet to be determined and some surveys give different results. According to The Globe and Mail, another survey involving senior loan offices found that they expected little change even though businesses feel as though their credit situation has improved.