Businesses expect slower sales in short term as cost, labour issues persist: survey

OTTAWA –

Businesses anticipate subdued gross sales within the quick time period as they face continued price and labour pressures, regardless of slowing inflation, in accordance with a survey by the Canadian Chamber of Commerce.

The chamber’s Business Data Lab launched the outcomes of its first-quarter ballot on business circumstances on Thursday, which discovered one-third of firms anticipate to boost costs subsequent quarter.

The retail, lodging and meals providers sector, together with wholesale commerce, building and manufacturing sectors, reported feeling essentially the most impacted by ongoing worth pressures.

Businesses stated they anticipate inflation to stay the highest impediment over the following three months at 58 per cent, adopted by enter prices at 46 per cent and rates of interest and debt prices at 40 per cent.

Inflation slowed to five.9 per cent in January, down from 6.3 per cent the month prior. Statistics Canada is predicted to launch February’s inflation charge subsequent Tuesday.

Most firms with a minimum of 5 staff stated they’re nonetheless involved about labour challenges, which companies plan to handle by way of greater wages, extra versatile work preparations, and enhanced coaching, in accordance with the survey.

Around three-quarters of firms with recruiting and retention challenges believed this may hinder their manufacturing.

While the business outlook weakened barely from the earlier quarter, 68 per cent of respondents nonetheless reported feeling optimistic for his or her business over the following 12 months, in contrast with 19 per cent that stated they really feel pessimistic.

Measured by census metropolitan space, Ottawa business noticed the most important bump in optimism since final quarter’s survey, and the very best degree of optimism total, rising 12 proportion factors to 80 per cent. Toronto companies have been the least optimistic, at 58 per cent, down 12 factors.

Business optimism was on the rise throughout Western Canada, led by Winnipeg at 70 per cent, adopted by Saskatoon and Edmonton at 67 per cent, Vancouver at 65 per cent, and Calgary at 63 per cent.

Nearly 16,000 companies responded to the survey between Jan. 3 and Feb. 6.

This report by The Canadian Press was first revealed March 16, 2023.