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Canada Business Sentiment Rebounded Before Second-Wave Lockdowns

  • Bank of Canada survey shows sentiment at highest since 2018
  • Recovery remains uneven with one in three business struggling
A worker wearing a protective mask opens an awning outside a Vancouver restaurant on Nov. 21, 2020.
A worker wearing a protective mask opens an awning outside a Vancouver restaurant on Nov. 21, 2020.Photographer: Jimmy Jeong/Bloomberg

Business sentiment rebounded to above average levels at the end of last year on strengthening domestic and foreign demand, according to the Bank of Canada.

The results from the central bank’s quarterly survey of executives show business conditions improved sharply amid a rebound that brought a number of sectors back to near pre-pandemic levels of activity. Managers reported stronger sales outlooks, investment and hiring plans and tightening labor markets. At the same time, the recovery is uneven, with about one-third of businesses reporting they continue to struggle.