In The Conference Board of Canada’s latest survey of business leaders, business confidence has reached its highest level in two years. This is encouraging news, considering business sentiment was at historic lows throughout 2020. Effective COVID-19 vaccines are rolling out both globally and nationally, and our survey results indicate that businesses hope the uncertainty surrounding the pandemic will subside in the short term.
The Index of Business Confidence is a reliable leading indicator of investment spending. When businesses were optimistic in the past, there was greater spending on machinery and equipment, which has a lasting impact on the country’s potential economic growth.