Business outlook survey suggests business confidence up, Prairies still weak

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The Bank of Canada's latest business outlook survey suggests business confidence has edged higher as global trade tensions have eased, but the Prairies continue to remain a weak spot.

People walk in Toronto's financial district in Toronto. OTTAWA -- Business confidence in Canada has edged higher as global trade tensions have eased, but the Prairies, hard hit by a drop in energy prices, continue to remain a weak spot, according to the latest outlook survey by the Bank of Canada.

The bank's survey also suggested that labour shortages are a key obstacle to meeting an unexpected rise in demand except in the Prairies. "It bears noting again that the regional element in this survey is important, with a still challenging operating environment for firms in the Prairies hidden beneath the headline figures."

The bank said that more than half of the affected respondents noted negative impacts of climate change including the consequences of extreme weather and increased costs related to complying with climate-related policy and regulation. A third of affected firms noted positive impacts including new business opportunities such as growing demand for green technology.

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