The BSI surveys companies throughout Alberta to gauge their opinion and sentiment for the coming quarter. Expectations for the first quarter of 2010 rose to 128.6, after fourth-quarter 2009 sentiment stood at 114.9. First-quarter 2009 sentiment was 99.7. (An index value more than 100 indicates optimism, and less than 100 indicates pessimism.)
"Without question, confidence is returning to Alberta's business community," said
The BSI, a joint effort of ATB and the Western Centre for Economic Research at the University of
Only the construction sector registered an index response below 100, at a marginally improved 86.6. Oil and gas sentiment vaulted to 141.2, from a neutral - or worse - outlook the past four quarters.
"We're a bit surprised to see the strong rebound in the energy patch," Hirsch said. "Given very weak natural gas prices throughout the survey period, we didn't expect to see optimism return that strongly." Hirsch said steady increases in crude oil prices, improvements in businesses' cost structures, and optimism about natural gas prices could be driving those gains.
The complete report - available at www.business.ualberta.ca/wcer - also tracks activity and hiring indexes, both of which improved in the most recent survey.
"Our survey confirms that recovery is underway in Alberta but that employment growth, like elsewhere in
The survey also measures businesses' medium-term expectations. This quarter's BSI suggests that more than two-thirds of Alberta businesses expect activity to grow over the next 12 months. Some 42 per cent expect activity to increase by more than 10 per cent, while 27 per cent expect it to increase by less than 10 per cent. Some 23 per cent expect outputs to remain stable, while 7 per cent expect them to drop.
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: 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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