Canadian exporters see a solid outlook on their sales to the United States, a survey by the Bank of Canada found.
“The prospects for foreign sales, especially to the United States, are strong,” he said.
Canadian exporters with positive views of sales are often linked to technology and US household consumption.
In addition, some Canadian exporters noted that the US economy is growing strongly and is recovering from the pandemic faster than the Canadian economy.
First and foremost, the Bank of Canada Business Outlook Survey summarizes the interviews conducted by the Bank’s regional offices with the top management of some 100 companies selected to reflect the composition of the gross domestic product of the Canadian business sector.
This survey was conducted by telephone and videoconference from May 11 to 28, 2021.
Thus, trends in anticipated demand continue to be driven by how businesses are affected by the pandemic.
About 40% of companies have current sales below pre-pandemic levels.
Generally, these companies see substantial increases in their future sales metrics relative to extremely weak levels of a year ago.
Several of these businesses are linked to the hospitality, tourism, travel and certain segments of the retail trade.
Many entrepreneurs expect their sales to recover fully in the next 12 months, and several expect pent-up demand to lead to a sharp increase in sales after restrictions are lifted.
Although companies hardest hit by the pandemic anticipate an increase in future sales, they do not expect their sales to fully return to pre-pandemic levels in the next 12 months.
These companies often cited ongoing international travel restrictions, caution among consumers to travel or participate in social activities, ongoing online shopping, and ongoing remote work.
The remaining companies fared better in the pandemic.
While most companies expect sales increases to continue, some anticipate sales growth at a slower pace.
These top-performing companies are linked to, or are benefiting from, housing, consumer goods (for example, food, outdoor sports, and recreation equipment), ongoing public spending (especially infrastructure), and natural resources of the sale or use of digital technology.
Together, the results from both groups of companies suggest:
- The trend of improved demand.
- A major expansion in the recovery that is coming.
- A shift towards a more balanced consumption of goods and services.