OTTAWA, Dec. 5, 2013 /CNW/ - Canadian exporters and investors are
feeling somewhat bullish about future prospects, according to a
semi-annual survey of Canadian companies released today by Export
Development Canada (EDC).
The overall increase in the Trade Confidence Index (TCI) was primarily
impacted by a majority of respondents who indicated that they believed
global economic conditions would improve over the next six months,
suggesting that looming reductions or expirations of U.S. and European
government stimulus programs were not dampening international trade.
"Back-to-back increases in trade confidence haven't happened since the
deluge of government spending hit the world economy in 2009," said
Peter Hall, Chief Economist, EDC. "What's compelling about this is that
there's a simultaneous echo of optimism around the world, including
consumers and businesses in the U.S. and Europe, and broadly across
Hall added that "a simultaneous rise in global business confidence bodes
well for Canadian exporters. Business may well get caught ham-handed,
as they have been in go-slow mode for years. Capacity is tightening,
creating an acute need for new investment. We may well be looking at a
moment when companies around the world start ramping up production to
keep up with demand."
The TCI, which serves as a pulse check of Canadian exporter and investor
confidence and their projections around business opportunities in the
next six months, moved up 2.8 points to 75.4 in fall of 2013. The
increase came on the heels of a 1.9 point increase in the spring of
2013, when the TCI hit 72.6 (up from 70.7 in the fall of 2012).
The following is a summary of some top line survey results:
A growing majority of respondents expect export sales to increase in the coming six months. The proportion of those expecting higher
sales edged up to 55 per cent, the strongest positive reading among the
five TCI elements.
Exporters are also more bullish about international business opportunities, with 34 per cent of respondents expecting better
opportunities over the next six months (up from 27 per cent in the
Orders from the U.S. also continued to increase in fall 2013: 40 per cent of respondents reported that orders from U.S.
customers have increased in the past six months, rising from 35 per
cent in the spring.
Respondents are continuing to diversify their markets, with 35 per cent saying they had begun exporting to new countries
during the past two years. Half of all respondents said they plan to expand into new countries over
the next two years.
While almost a third of respondents expect to increase hiring over the
next six months, 73 per cent anticipate difficulty in hiring the skilled labor that they need to grow and compete.
The TCI survey was conducted in late September to early October, 2013. A
total of 1,000 Canadian businesses participated, and the TCI was
calculated on a total of 769 respondents.
For more information about EDC and the Trade Confidence Index, visit Trade Confidence Index.
EDC is Canada's export credit agency, providing financing and insurance
solutions locally and around the world to help Canadian companies of
any size respond to international business opportunities. As a
profitable Crown corporation that operates on commercial principles,
EDC works together with private- and public- sector financial
institutions to create greater capacity for Canadian companies to
engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca
SOURCE: Export Development Canada
For further information:
Export Development Canada
Tel: (613) 598-2904