BoC: Business Outlook Survey Indicator down to -0.6 in Q1 from 2.2

Eren Sengezer FXStreet

The Bank of Canada's Business Outlook Survey - Spring 2019 showed that the Business Outlook Survey Indicator dropped to -0.6% in the first quarter from 2.2. The publication further revealed that the Senior Officer Loan Survey improved to -2.7 from -16 and Future Sales rose to 6 from -1. The initial market reaction weighed on the CAD and the USD/CAD pair surged to 1.3370, where it was up 0.37% on the day.

Key takeaways from the press release

The Business Outlook Survey indicator decreased from a strongly positive level in the winter survey and is now slightly negative, suggesting a softening in business sentiment.
Firms’ expectations for sales remain positive but have softened as several businesses are less optimistic about demand.
Credit conditions eased marginally over the past three months.
Businesses expect input price growth to stabilize over the next 12 months.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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