Bank of Canada Q4 survey finds businesses pointing to continued recovery

OTTAWA: Business sentiment in Canada has turned slightly positive for the first time since the COVID-19 pandemic began, with the outlook bolstered by stronger foreign and domestic demand, a Bank of Canada survey said on Monday.

While half of businesses surveyed say their current sales are below pre-pandemic levels, most expect those to increase in the next 12 months. That said, one-third of businesses - mainly those offering services that require close personal contact - do not expect sales to return to pre-pandemic levels in that period.

"The Business Outlook Survey indicator continued to recover and turned slightly positive, signaling improved business sentiment," the Bank said.

"Robust foreign demand, improved confidence related to vaccines, and ongoing government relief programs all contribute to the improved outlook."

The survey of around 100 firms was conducted between Nov 16 and Dec 4, prior to a number of provinces imposing stricter restrictions to curb the rapid spread of COVID-19 and before the vaccine rollout began.