Canada: BOS expected to show a stark regional and industrial divergence in sentiment - TDS

Research Team at TDS, suggests that the BoC’s Business Outlook Survey is expected to show a stark regional and industrial divergence in sentiment.

Key Quotes

“On balance, ongoing challenges in the energy industry paired with continued (though cautious) optimism among firms exposed to the United States should allow the balance of opinion on future sales to drift higher to +20.

Export-orientated firms are likely to report growing capacity pressures though the national average will be weighed down by the resource industry where there continues to be abundant spare capacity. Finally, expectations of future inflation are also expected to coalesce in the bottom half of the Bank's 1-3% target range.”