Survey Insights on Business Conditions
In-depth analysis of the Canadian Survey on Business Conditions, with responses from over 15,000 companies each quarter, including their key obstacles, expectations for the future and views on emerging issues.
In-depth analysis of the Canadian Survey on Business Conditions, with responses from over 15,000 companies each quarter, including their key obstacles, expectations for the future and views on emerging issues.
Stephen Tapp
Chief Economist, Canadian Chamber of Commerce
The global economy is normalizing, but the situation is still not normal. That’s because we’re adjusting to several major shocks, including the pandemic, Russia’s war, and higher interest rates as central banks battle inflation.
In this context, Statistics Canada’s latest Canadian Survey on Business Conditions (CSBC) shows that costs and labour issues remain the biggest near-term obstacles for Canadian companies. The continuing evidence of broad-based cost pressures on firms raises the risks that high inflation proves more persistent than the Bank of Canada would like. This survey also finds that the higher interest rates designed to bring down inflation are starting to bite: they’re causing firms to raise prices, reduce investment and delay hiring, and they’re the most common reason why businesses can’t take on more debt. Acute labour challenges are a key concern for most companies with more than five employees, and these issues are hindering production, especially in services.
Even as higher interest rates slow demand, there are a few bright spots. First, while long-standing supply-side bottlenecks for the workforce and supply chains remain elevated, they have eased in recent surveys. This might be because businesses are taking proactive steps to address these problems, such as raising wages, embracing flexible work options and working with suppliers. Second, while the near-term outlook for sales is clearly subdued, all things considered, most companies remain optimistic about the year ahead, especially larger firms and those in services.
There’s plenty more analysis in our report, including the slowdown in online sales, challenges to adopting new technologies and women’s (under)representation in senior management positions. Check back next quarter for more BDL business survey insights.
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Outlook & Sentiment
Supply Chain
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