The economy appears headed for modest growth according to a clear majority of CEOs and other business leaders in a National Post/COMPAS study of business executives conducted under the sponsorship of the Canadian Chamber of Commerce and CIBC. To the extent that the recovery may be slowed, the two key factors blocking rapid revival are lack of consumer confidence and a feeling among investors that the Canadian economy has less of a future than the American.

Business leaders have become more optimistic about our economy over the last two months. In addition to forecasting modest growth, business leaders are more apt to say that their organization will increase its workforce compared to two months ago. Capital spending plans appear to have stabilized.

On balance, business leaders feel that statements made by Finance Minister Martin and U.S. Treasury Secretary Paul O’Neill about economic growth over the next six months might be moderate over-estimations. Business leaders may fault Paul Martin and Paul O’Neill for being a little too exuberant or for using poetic license but not for telling untruths.

View / Download complete poll in PDF