American business executives with ties to Canada are wary of the country’s economic future, causing their sentiment on the Canadian economy to reach an all-time low, according to a new survey.
The chair of the American Chamber of Commerce (AmCham) in Canada, which conducted the survey, says sentiment is “definitely at a record low,” citing ongoing economic uncertainty as the main reason why.
“There’s no secret that the economy right now is really kind of teetering on the edge, and people don’t know whether it’s going to get much worse, or if it’s going to get better, so that uncertainty plays a lot into it,” Dave Olsen told BNN Bloomberg in a Friday television interview.
“The other thing that we saw in the numbers is that there’s a lot of legislation right now in Parliament in Canada, and there’s a lot of uncertainty around that, and I think that also contributes to the sentiment right now.”
Olsen said many American businesses have been discouraged by the regulatory landscape in Canada, including tax policies that have created challenges for companies looking to invest in the country.
He said AmCham Canada is currently in discussions with the federal government about these issues, and he’s been pleased with the level of engagement so far.
“In the last month, I can think of three or four different meetings we’ve had in Ottawa to address really specific concerns and regulations, and tax issues as well,” Olsen said.
“So, the engagement is there, and now it’s really how we reach middle ground and common ground.”
IMMIGRATION ‘ATTRACTS INVESTMENT’
Olsen said another challenge for American companies looking to invest in Canada is a significant drop off between the productivity of U.S. and Canadian workers.
On the other hand, Olsen said Canada’s current immigration policies “attract investment,” and make it easier for companies to hire people and find the right talent.
“I think that’s our magnet that brings investment in,” he said. “Most of our companies here that are expanding in Canada are expanding just for that reason.”
UNCERTAINTY AHEAD
Olsen said that while Canada’s economy is in a technical recession and economic activity in the U.S. is livelier for the time being, uncertainty exists south of the border as well.
“In the late first or early second quarter, we are expecting a recession in the U.S. – a mild one, but still a recession,” he added.
“So, I think there’s uncertainty there, but I think the uncertainty is probably more clear here in Canada right now.”
Olsen said that despite the uncertainty, “there’s no better place to invest than North America,” adding that if Canada is successful in finding common regulatory ground with U.S. companies, it will clear the way for future investment.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
