The Bank of Canada says its Business Outlook Survey suggests business sentiment is broadly positive except in the Prairies. Nationally, expectations for future sales growth remain positive. Domestic sales seem to have strengthened but there is still weakness among firms tied to the energy sector. Labour markets appear to have tightened except in the Prairies. Inflation is expected to remain in the lower half of the Bank’s inflation control range.
According to the Bank of Canada’s quarterly Survey of Consumer Expectations, expectations concerning one-year-ahead and five-year-ahead inflation, declined slightly in the fourth quarter of 2019. Wage growth expectations remained largely stable. Overall, expectations for growth of household income were largely stable in the fourth quarter. However, expectations for spending growth increased. Expectations for house price growth increased somewhat across the country although the numbers were weak in Saskatchewan and Alberta.