Royal Bank of Canada (RBC) is highlighting the release of the Q2 Business Outlook Survey to be published by the Bank of Canada (BoC). This data is seen as crucial for mapping the extent to which the domestic corporate sector has been able to adapt to global energy price fluctuations, which soared significantly in recent months.
RBC economists Nathan Janzen and Abbey Xu explained that this survey will be a key indicator in measuring business optimism. The focus of the observations will be on sales projections, employment, and investment expansion plans, which showed a positive trend in the previous quarter.
RBC also highlighted that the survey likely captured the period when West Texas Intermediate (WTI) crude oil prices were at a high level, approaching US$100 per barrel. Nevertheless, economists remain optimistic that long-term inflation expectations will remain anchored around the 2% target set by the central bank.
In addition to the business sentiment survey, market participants are also awaiting the release of May trade data scheduled for the same time. Projections indicate a slowdown in the export sector, while the energy trade balance is expected to be more stable as global commodity price pressures ease.
