The BSI surveys companies throughout Alberta to gauge their opinion and sentiment for the coming quarter. Expectations for the fourth quarter of 2009 rose to 114.9, after third-quarter sentiment stood at 107.0. (An index value more than 100 indicates optimism, and less than 100 indicates pessimism.)
"As we move into the final months of the year, business attitudes seem decidedly more cheerful," said
"But I think businesses are also being realistic. Alberta's economy has improved, but it could be a bit of a slow march forward. That's reflected in the sentiment. It's improved, but cautious."
The BSI, a joint effort of ATB and the Western Centre for Economic Research at the University of
The sentiments index is up substantially in three of the six sectors measured - manufacturing, professional/technical services, and wholesale. Transportation/warehousing sentiment remains strong (126.0), construction respondents remain pessimistic (68.0), and the oil and gas industry is neutral, at 99.1.
Hirsch said negative sentiment in the construction industry shouldn't be too surprising.
"With the amount of new commercial office space coming on the market, particularly in
"The good news is the Alberta economy is likely to turn the corner in the upcoming quarter," Chambers said. "The not-so-good news is that unemployment will remain high."
In the medium term, survey results suggest that fully seven in 10 Alberta businesses expect activity to grow over the next 12 months. Some 45 per cent expect activity to increase by more than 10 per cent, while 26 per cent expect it to increase by less than 10 per cent. Two in 10 expect their outputs to remain stable, while 10 per cent expect them to drop.
The complete report is available at www.business.ualberta.ca/wcer. The next ATB Financial Business Sentiments Index(TM) report will be released on
About ATB Financial - ATB Financial is the largest Alberta-based financial institution, with assets of
About the Western Centre for Economic Research - The WCER is an applied research centre within the University of
For further information: For further information: Todd Hirsch, Senior Economist, ATB Financial, (403) 974-5023, e-mail: [email protected]; Jason Brisbois, Chief Economist, Western Centre for Economic Research, School of Business, University of Alberta, (780) 492-4104, e-mail: [email protected]
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