Hiring intentions tumble to lowest levels since recession: Bank of Canada

OTTAWA -- The hiring and investment intentions of Canadian companies have fallen to their lowest levels since the 2009 recession, a new survey has found.

See Full Article

The country's businesses see a darker road in 2016 as firms continue to battle the bite of a commodity-price shock that has reached beyond the resource sector, according to the Bank of Canada's latest business outlook survey released Friday.

Companies' investment in equipment and hiring intentions for the next 12 months tumbled to their lowest levels since the 2009 recession, the findings say.

Fewer firms, the poll found, expected to boost their staff levels over that period, while plans to cut employees were more widespread -- and not just those in commodity-producing sectors and regions.

"The low-commodity-price environment poses significant challenges for many businesses," said the central bank's quarterly report.

"The negative effects of the oil-price shock are also increasingly spreading beyond the energy-producing regions and sectors.

"For example, many businesses across the energy supply chain continue to struggle as they adjust to an environment of weak demand."

The survey's interviews were conducted between mid-November and early December, before oil prices and the dollar slid even further.

Some exporters, however, remained optimistic their sales will benefit from strengthening foreign demand over the coming year, particularly amid widespread expectations of growth in the U.S. economy.

The questionnaire also found that some firms believe the lower dollar will boost foreign sales and tourism-related business. But at the same time, the cheaper loonie hikes up the costs of products and services that companies need to import from outside Canada.

The Bank of Canada also released the results of its latest senior loan officer survey, which focuses on business-lending practices over the final three months of last year.

It found that overall lending conditions had become more difficult for firms during the fourth quarter. Meanwhile, overall demand for credit was roughly unchanged.



Advertisements

Latest Economic News

  • Consumer culture on the rise in North Korea

    Economic CTV News
    PYONGYANG, Korea, Democratic People's Republic Of - Like all North Korean adults, Song Un Pyol wears the faces of leader Kim Jong Un's father and grandfather pinned neatly to her left lapel, above her heart. Source
  • Asian stocks slide as Spain attack weighs down markets

    Economic CTV News
    HONG KONG - Asian stocks sank Friday as global investor sentiment was battered by big losses on Wall Street amid U.S. political turmoil and a deadly van attack in Spain. KEEPING SCORE: Japan's benchmark Nikkei 225 index lost 1 per cent to 19,505.23 and South Korea's Kospi shed 0.2 per cent to 2,356.58. Source
  • Starbucks chairman questions 'moral fiber' of U.S.

    Economic CTV News
    SEATTLE -- Starbucks chairman Howard Schultz says the events surrounding a white nationalist rally in Charlottesville, Virginia, last weekend have put the "moral fiber" of the country in question. Schultz said at an employee forum in Seattle on Tuesday that he has "profound concern about the lack of character, morality, humanity," displayed at the rally, according to a recap of the meeting posted on Starbucks' website. Source
  • Ex-J.C. Penney executive tapped for CFO gig at Hudson's Bay Company

    Economic CTV News
    TORONTO -- Hudson's Bay Company has tapped the former chief financial officer of another struggling retailer, J.C. Penney, to fill its vacancy. Edward Record will step into the executive role on Aug. 28, taking over the job from Paul Beesley, whose upcoming departure was announced in early July. Source
  • Apple CEO makes $2 million pledge to fight hate

    Economic CTV News
    SAN FRANCISCO -- Apple is donating $2 million to two human rights groups as part of CEO Tim Cook's pledge to help lead the fight against the hate that fueled the violence in Virginia during a white-nationalist rally last weekend. Source
  • Walmart took bigger bite out of Canadian grocery industry last quarter, earnings show

    Economic CBC News
    Walmart says its Canadian stores gained market share against rivals during its fiscal second quarter. "We further improved our price position against competitors, which contributed to market share gains in key traffic driving categories such as food and consumables," Walmart chief financial officer Brett Biggs said in remarks prepared for analysts during a conference call to discuss its most recent results Thursday. Source
  • Minnesota to review Enbridge Line 3 oil pipeline from Alberta

    Economic CTV News
    MINNEAPOLIS -- Minnesota regulators on Thursday released the final environmental review of Enbridge Energy's proposal to replace its aging Line 3 oil pipeline, which carries Canadian tar sands crude across northern Minnesota to Wisconsin. The state Commerce Department has updated and expanded the massive document since it released the draft for public comment in May. Source
  • Ontario court dismisses CUPE lawsuit over sale of Hydro One shares

    Economic CTV News
    TORONTO - An Ontario court has thrown out a lawsuit against the provincial government over the controversial partial sale of Hydro One. The lawsuit filed last December by the Canadian Union of Public Employees alleged the sale of shares in the utility was "motivated by improper and ulterior purposes," namely to reward benefactors of the Ontario Liberal Party. Source
  • L.L. Bean boosts production of iconic boot

    Economic CTV News
    LEWISTON, Maine -- L.L. Bean hopes to give the boot to backlogs of its most iconic product. The Maine-based retailer is expanding production to keep up with demand for its leather-and-rubber "duck boot" with a new manufacturing centre with another machine used to make the rubber soles. Source
  • Canadian manufacturing sales fall 1.8 per cent in June, breaking winning streak

    Economic CTV News
    OTTAWA -- Canadian manufacturing sales fell in June following three consecutive months of gains, with declines led by the petroleum and coal industry. Manufacturing sales slipped 1.8 per cent overall to $53.9 billion in June, Statistics Canada said Thursday in a monthly report. Source