But Statistics Canada's Business Conditions Survey shows mostly optimistic outlook
Canadian businesses continue to face challenges related to cost and labour but are generally remaining optimistic about what’s ahead.
Statistics Canada has released its Business Conditions Survey for the first quarter of 2024 which shows that inflation remains the most concerning matter for businesses with 74% expecting cost-related obstacles over the next three months. Rising inflation is a concern for more than half of businesses but those in accommodation and food services, transportation and warehousing, and agriculture, forestry, fishing and hunting are most likely to expect challenges from this.
Labour challenges are led by talent acquisition and retention. However, fewer businesses reported this as an obstacle for the next three months (39%) compared to the previous quarter (40%). Labour shortages are expected by around one quarter of respondents, led by those in accommodation and food services, construction, and administrative and support, waste management and remediation services.
A quarter of businesses say they expect supply chain issues to remain in the coming months, roughly in line with the previous quarter.
Sentiment rises
Despite the challenges, 68% of respondents are very optimistic or somewhat optimistic about their future outlook over the next 12 months, slightly up from the previous quarter.
The share of businesses expecting sales of their goods and services to increase was 18%, up from 16% in the fourth quarter of 2023, and 25% expect to increase their prices, up from 24% in the previous quarter.
Over one-third (37.3%) of businesses indicated that their revenues were higher in 2023 when compared with 2022 revenues.
Asked about credit intentions, 72% of respondents have no plans to increase debt in the next three months with 59% saying they have the ability to take on more debt, while 25% do not due to higher interest rates and cash flow issues.
Businesses were also polled on artificial intelligence usage with 86% indicating they have not considered using generative AI and have no current plans to implement generative AI into their business.
