OTTAWA—The hiring and investment intentions of Canadian companies have dropped to their lowest levels since 2009 as the fallout from sliding commodity prices seeps beyond resource-rich regions, a new survey has found.
Companies are anticipating a darker road in 2016 with many facing “significant challenges” tied to the commodity and energy price plunges, according to the Bank of Canada’s latest business outlook survey.
“The negative effects of the oil price shock are also increasingly spreading beyond the energy-producing regions and sectors,” the central bank said in the quarterly report released Monday, Jan. 11.
“For example, many businesses across the energy supply chain continue to struggle as they adjust to an environment of weak demand.”
As a result, the poll found fewer firms expected to boost employment over the next 12 months, while plans to cut staff were more “widespread” with many companies citing a need to cut costs, the survey said.
Meanwhile, investment expectations for equipment and machinery also hit their lowest point in seven years. Many firms planned to curb spending to repair and replace existing equipment and, compared with recent surveys, the bank said there were fewer plans to expand production.
