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BOC 2Q Biz Outlook Surv responses point.>

CANADA DATA
CANADA DATA: BOC 2Q Biz Outlook Surv responses point to 'continued 
business optimism'. Firms report increasing capacity and price 
pressures. Firms expct moderating sales grwth but outlk still 'robust'.
Biz attribute higher infl pressures to oil,labr costs. Investment 
intentions slightly weaker but 'buoyant'. Higher investment plans more 
prevalent in services. Frequently report regulatory environmnt 
negatively affecting invest plans. Higher employment intentions broad 
based. Labor shortage indicators point to tighter labor mkts. 58% expect 
2%-3% infl next 2 yrs, highest since 1Q'12. Exporters expect exports to 
increase at greater rate. Firms generally expect strong US economic 
growth. Biz expect 'some further' constraints in meetng dmd. Survey 
conducted May 3 through June 5 but most interviews done before US 
tariffs on steel and aluminum announced.

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