BOC Business Outlook Survey and Consumer.....>

CANADA: BOC Business Outlook Survey and Consumer Expectations

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- Future sales growth is expected to remain positive; with concerns 

around trade tensions. 

- Firms outside energy-related regions pointed to infrastructure and 

resource projects, population growth, consumer spending and housing 

activity supporting demand for their products.

- Capacity pressures edged up for three quarters in a row; suggesting 

economic slack has been absorbed.

- Number of firms planning to expand their workforce reached its 

highest level since 2Q of 2018. 

- Firms seeing inflation at or below 2% declined from 66% to 61%.

- BOS indicator surged in 4Q (0.74); suggesting a small improvement in 

business confidence. 

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- Consumer expectations on one-year-ahead inflation declined from 2.4% 

to 2.2%; current inflation 2.07%; above the BOC target inflation.

- Consumer expectations about wage growth is largely stable. 

- Expectations for spending growth (+3.36%) increased, surpassing 

expectations for income growth (+2.06%); suggesting a rise in consumers 

debt. 

- Expectations on house price growth edged up in 4Q; Ontario (+5.12%) 

and British Columbia (+4.75%) are the highest.