A survey conducted by the Bank of Canada revealed that Canadian Companies are expecting business transactions to improve over the next 12 months.
The business outlook survey is a summary of interviews conducted by the bank's regional divisions with the help of 100 firms. The survey aims to gather insights of different businesses regarding the economy.
The survey, which was announced on Friday, unveiled that though several Canadian companies foresee a busy economic activity this year, they have varying opinions as to whether the weaker Canadian dollar will have a positive effect on input prices.
Bank of Canada, Canada's central bank reported that several businesses expect "tangible signs of improving United States demand," and were actually very optimistic in terms of being able to develop foreign compared to domestic transactions, according to its business outlook survey which it conducts in a quarterly basis.
The solid U.S. economy and the increasing availability of jobs opened up new opportunities for businesses to flourish according to Bloomberg.
Aside from that, the survey stated that the companies were also conflicted about the depreciation rate of the Canadian dollar.
"Some firms consider that the effect has already taken place, while others are still anticipating some impact on the prices of imported inputs," according to the survey.
However, 59 percent of the companies said that they are expecting prices of products to continually increase over the next two years, lesser than the 64 percent reported in the previous survey during the second quarter.
The number of companies that predicted inflation would be in the 2 to 3 percent band to 37 percent from 30 percent.
On a separate note, the Bank of Canada conducted a survey for senior loan officers which revealed that they believe that there will be more relaxed lending conditions in Canada during the third quarter.
