(July 20 – 11:45 ET) – Despite record-setting optimism for the second quarter of 2000, Canadian businesses are predicting lower sales and profits for the third quarter. However, although expectations dropped significantly, figures for the third quarter remain the second highest ever reported in the eight-year history of Dun & Bradstreet Canada’s Quarterly Survey of Business Expectations.
“Last quarter we saw unprecedented optimism and confidence, but I believe our third quarter results better reflect the current realities of businesses in Canada,” said Greg Nordal, president, Dun & Bradstreet Canada.
“The significant fluctuations in business expectations are a result of a number of factors, including the recent stock market volatility and economic slow down in the U.S. and Canada. That said, I don’t think this is the end of the fluctuations and we’ll continue to see some adjustments by the time our Q4 survey results are released,” added Nordal.
B.C. reports the worst expectations in Canada for the third quarter, with significant declines in sales, profits and employment expectations from the previous quarter.
After record-setting optimism for last quarter, Ontario barely exceeds the national average, predicting significant declines in sales and profits for the third quarter.
Atlantic Canada reports a sharp decrease in profit expectations, reporting less than the national average.
Quebec predicts slightly less sales and profits for the third quarter, but an increase in employment levels — higher than the national average.
After a gloomy report for last quarter, the Prairies predict higher than average profits and an increase in employment expectations.
Businesses in retail predict significant declines in all areas, reporting lower expectations than any other sector for the third quarter.
The latest survey was conducted in June 2000. Approximately 1,800 business owners and senior executives representing major industry segments across Canada were asked if they expect increases, decreases or no change in their upcoming quarter sales, profits, prices, inventories and employment requirements. This survey has proved to be an accurate measure of Canadian economic performance since it was introduced in 1992.
-IE Staff