Business investment intentions flat as Canadian economy plateaus
Canada’s small business managers plan to keep their investment spending flat this year, according to a new survey that mirrors a crucial question asked by the central bank.
Business Development Bank of Canada found 32 per cent of owners expect to invest less, just ahead of the 31 per cent who plan to spend more, according to a report Tuesday. That result is gloomier than the Bank of Canada’s last quarterly business outlook survey, which showed 46 per cent of companies large or small would spend more and 21 per cent planned cutbacks.
“Rising concerns about the economy and rising capacity constraints — especially with the ongoing shortage of qualified labour — all weigh on investment intentions,” Pierre‑Olivier Bedard‑Maltais, an economist at BDC, said in the report.