Canadian investment intentions up in 2013
- February 26, 2013
Manufacturers report an intended increase of 2.4%, $20.9 B
2013 will turn out to be a good year if the results of a Statistics Canada survey pan out. Participants in the 2013 Canadian Public and Private Investment survey say they plan to increase capital investment. The modest 1.7 per cent increase follows a 7.2 per cent increase in 2012.
The annual survey by Statistics Canada shows that Canadian public and private organizations intend to boost spending on construction and machinery and equipment.
"The 2013 edition of the P&PI, if anything, likely understates 2013 investment plans," says Nathan Janzen, an economist with RBC Economics. "The survey was conducted during the period between October 2012 and late January 2013. This period coincided with a contentious US election and the looming threat of the so-called US fiscal cliff, which likely weighed at least partly on Canadian business investment plans."
Janzen adds that the price of oil from Western Canada fell in that same period, which also may have had an impact on investment spending intentions.