Canadian firms sour on economy after tough year

The newest Bank of Canada survey on business conditions finds Canadian firms have soured on the economy.

The quarterly survey of 100 firms that represent a cross-section of the economy reports slow sales growth over the past 12 months.

And they say uncertainty about the global economy continues to weigh on their plans and decisions.

The survey shows they are somewhat more optimistic that the next 12 months would be better than the past year in terms of sales — but their hiring intentions remain muted and their investment intentions have fallen.

Fewer firms are also reporting labour shortages, an indication of a loose labour market.

The bank says some smaller firms included in the survey reported more difficulty obtaining credit, but a separate survey of loan officers actually suggests lending conditions have eased slightly during the first quarter of 2013.

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