Calgary 11°C

EXPLORE OUR PARTNER PUBLICATIONS

Explore

Strong reasons for optimism: Results from the June 2024 Business Expectations Survey 

Written by 

share

Overall, the province’s economic outlook remains firmly positive. While we expected hiring to cool off, businesses continue to report plans to increase staffing to meet growing consumer demand. Some notable findings include: 

Sales expectations overwhelmingly positive 

  • Almost two-thirds (63%) of respondents reported an increase in forward-looking indicators (new orders, sale inquiries, etc.) while very few reported a deterioration (7%). 
  • As such, Alberta businesses expect strong sales to continue: 81% expect an acceleration compared to 52% in February, while only 3% expect sales to slow. 
  • This represents a continuation of strong growth. The majority of respondents (61%) reported that sales have grown over the last year. 

Labour demand remains surprisingly strong 

  • An impressive two-thirds (67%) of businesses plan to increase staffing over the next year, up from 49% in February. Meanwhile, 24% expect current staffing levels to hold. This leaves the balance of expectations at 58%, up from 38% in February. 
  • Labour constraints continue to be an issue. 61% of respondents report that labour shortages are restricting their ability to meet demand, up from 25% in February. This is a sizeable change, flipping the balance of expectations back to negative territory. We are cautious not to read too much into any single survey or question, so our next survey in November will shed more light on whether this is a real shift or a blip. 
  • That said, businesses report that, overall, the issue is better than it was a year ago. Around 40% of businesses say that labour shortages are less intense than they were last year, in line with our February survey. 

Investment plans show caution as financing remains costly 

  • Planned spending on capital investment remains limited with a balance of expectations of 9%, similar to its level in February. In other words, a roughly even number of businesses say they will increase spending as those who are expected to cut spending. 
  • Meanwhile, access to financing has improved. The balance of expectations is out of negative territory for the first time since 2021. Around 27% of respondents reported conditions eased over the last three months, up from 14% in February. 
  • Many businesses report that they would face some difficulty in meeting an unexpected increase in demand, suggesting businesses are operating at, or near, full capacity. 

Summary of Results 

Overall, this is encouraging news for Alberta businesses and Albertans, particularly in terms of hiring and sales expectations as the strength of the Canadian economy wanes. With the Bank of Canada expected to decrease interest rates further this year, we are likely to see further improvement in financing and investment plans as well. 

Survey conducted and provided by the Business Council of Alberta. 

Written by 

share