Confidence in the Canadian economy among senior chartered accountants soared in the third quarter, with profit, revenue and jobs all on the rise for the first time in a year, according to a new survey.
The survey, by the Canadian Institute of Chartered Accountants and The Royal Bank of Canada, found that 46% of respondents were optimistic about prospects for the economy over the next 12 months. That compares with 28% in the second quarter and just 2% in the final quarter of 2008.
“Canadian businesses have faced enormous challenges and pressure from global economic uncertainty in the past year," said Shauneen Bruder, executive vice president, business and commercial banking at RBC. "While no one can predict the speed of economic recovery with any certainty, it is encouraging to see such a big shift in positive economic data when compared to the latter half of 2008.”
The quarterly survey, known as the CICA/RBC Business Monitor, found that company revenue was up 2.5%, employment numbers up 0.5% and profits rose 2.3%. It's the first sign of growth in these indicators since the third quarter of 2008.
The report surveyed 529 chartered accountants in senior positions in private and listed companies across Canada.
The findings add to evidence that the economy is starting to emerge from recession. Company profits gained for the first time in nine months in the third quarter, while retail spending rose 1% in September from the previous month, almost double the rate analysts had been expecting.
That said, overall economic growth in the third quarter is likely to have fallen below the Bank of Canada's 2% target, government Mark Carney said recently.
"Companies have gained an understanding of the challenges associated with today's economy," said Kevin Dancey, president and chief executive of the CICA. "However, while optimism has grown considerably there continues to be a measure of caution."
