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Bank of Canada says mood of Canadian businesses remains ‘subdued’ as oil shock lingers

Bank of Canada's quarterly survey found companies plan to increase hiring and investment but only modestly.

OTTAWA – The mood among Canadian business leaders is “subdued overall,” because the drag in the oil-price shock is constantly on the overshadow steady foreign demand that’s been fuelled with a weak dollar.

“Expectations for future sales growth remain positive, with clear signs of support from U.S. demand,” the financial institution of Canada said Friday in the spring Business Outlook Survey.

“Yet, the outlook for domestic sales is guarded in light of sluggish demand and also the ongoing adjustment to lower oil prices.”

At the same time frame, the number of companies that plan to invest more and hire additional staff increased “but remain modest,” using the survey indicating opinion is “sharply split among firms.”

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