Canadian resource companies have less optimism than they had during the summer, according to the Bank of Canada’s Business Outlook Survey, which was released on Monday.
“Responses to the autumn survey point to less optimism among firms than in the summer survey, as weaker expectations for U.S. growth and a more uncertain global outlook weigh on business sentiment. Indicators of future business activity, capacity constraints and price pressures have all moved down from the levels recorded in the previous survey,” wrote the survey’s authors.
Miners and other resource firms expect commodity prices will rise less rapidly over the next 12 months.
Capital spending plans are still on track.
“The balance of opinion on investment in machinery and equipment remains solidly positive, although it has moderated since the summer survey. While the balance continues to point to an increase in investment over the next 12 months, a number of firms reported a more cautious approach to their capital spending plans, and a few reported that projects may be put on hold, given the uncertainty in the current economic environment. Overall, more firms cited plans to repair or replace existing equipment than in the summer survey.”
Credit conditions remain tight, according to survey respondents.
