The global credit crunch is making itself felt on Canadian businesses, the Bank of Canada said Monday in in its quarterly business outlook survey.

Forty-one per cent of firms said it was more difficult to get financing in the previous three months versus the 17% that said it was easier.

“Reports of tighter credit conditions were widespread across sectors and regions, with most firms attributing the tightening to a market-wide repricing of risk,” the central bank said.

This was the third consecutive quarter in which credit conditions have continued to tighten.

When companies were asked whether they expected sales over the next 12 months would grow, stay the same or fall from the previous year’s rate, a slightly greater percentage expected sales would fall than rise (38% versus 36%). Another 26% expected no change. That’s the weakest balance of opinion regarding future sales growth in more than six years.

Firms that are directly exposed to the weaker U.S. economy are more pessimistic about future sales, the bank said.

Only 28% of firms plan on boosting their spending on machinery and equipment in the coming year. That’s the weakest in almost five years.

The survey also found that employers are generally forecasting higher employment in their firms in the coming year, except for those in the manufacturing sector.

Firms in western Canada — especially those in British Columbia — are still reporting difficulties in hiring enough qualified staff.

About 42% of firms surveyed expect that the cost of goods and services they buy over the next 12 months will grow at a greater rate than in the past year. Only 16% expect the rate of input inflation will go down. That 26-point difference is the highest since the autumn 2005 survey, when Hurricane Katrina sent energy prices skyrocketing.

To carry out its quarterly business outlook survey, the regional branches of the Bank of Canada talk to about 100 major firms.