Economic and employment growth driving confidence
TORONTO, May 8, 2013 /CNW/ - Optimism in the Canadian economy has spiked
significantly over the last six months, according to Ernst & Young's
latest Canadian Capital Confidence Barometer. Fifty-six percent of Canadian executives believe the country's economy
is improving, up from only 29% in October, with access to capital,
employment growth and corporate earnings all showing positive gains.
"Our survey indicates that confidence in credit availability has
rebounded significantly," says Tony Ianni, Transaction Advisory
Services Partner at Ernst & Young. "In Canada, 45% of respondents
reported access to capital is improving, up from only 20% in October.
This is good news because with access to capital, businesses are in a
better position to create jobs, invest in innovation and implement
plans to grow."
In Canada, 37% of survey respondents expect their business to create
jobs and hire talent. And when it comes to growth strategies, while
fewer Canadian companies expect to pursue an acquisition in the next 12
months (33%, down from 44% in October and 48% a year ago), they're more
likely to exploit technology and develop new markets and products than
their US and global counterparts.
"The results show that Canadian companies remain cautious," explains
Ianni. "They're focusing on their core assets, and taking a
wait-and-see approach when it comes to mergers, acquisitions, sales and
Accordingly, a supplemental survey shows 67% of Canadian respondents
report that they're worried about the effect of continuing uncertainty
in the global economy on their business. However, while they plan to
exercise caution over the next 12 months, they're optimistic about the
"More businesses report seeing expansion in the next 24 months, and even
more in the next three years," says Ianni.
For those companies planning expansion, 83% expect it to come from
Ianni adds, "Canadian businesses are assessing deal opportunities more
rigorously. While they're confident in the Canadian economy, they're
waiting to see what happens on the global scale."
About the survey
Ernst & Young's Capital Confidence Barometer is a survey of more than 1,600 senior executives from large companies
around the world and across industry sectors. The Barometer's objectives are to gauge corporate confidence in the economic outlook,
understand boardroom priorities over the next 12 months and identify
the emerging capital practices that will distinguish companies that
build competitive advantage as the global economy continues to evolve.
This is the eighth twice-yearly Barometer in the series, which began in November 2009.
About Ernst & Young
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advisory services. Worldwide, our 167,000 people are united by our
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SOURCE: Ernst & Young
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