OTTAWA, June 8, 2012 /CNW/ - Canadian exporter confidence has bounced back from one of the lowest points on record last fall, according to a survey by Export Development Canada (EDC) released today.
EDC's Trade Confidence Index (TCI) is a semi-annual survey that examines the attitudes of Canadian exporters as they forecast the business environment over the next six months through five index elements: trade opportunities, export sales, domestic sales, and both domestic and global economic conditions.
The overall TCI score moved up to 75.9, up from 67 in the fall of 2011 one of the lowest points on record. The 75.9 score is consistent with normal economic conditions.
"It's a relief to see that the Index has recovered from last fall's drubbing," said Peter Hall, Chief Economist, EDC. "At the time, the plunge looked like an overreaction to temporary global slowing. Exporters are now seeing a return of growth."
The key indicators that increased Canadian exporter confidence were a reversal in exporter perception that global economic conditions will get worse and a significant increase in the amount of exporters who believe that their export sales will increase over the next six months. More than 60 per cent of exporters believe that their export sales will grow over the next two quarters.
"More than a third of exporters reported increasing U.S. orders, a trend that is expected to continue through 2012," said Peter Hall. "Interestingly, with all the challenges Europe is facing, exporters are seeing more growth in the UK, Germany and France - and they expect it to continue."
"Canadian exporters are increasing their activity in the largest emerging markets. Almost half of Canadian exporters are noting BRICM markets as an export destination, up five percentage points in the past six months. Despite global uncertainty, Canadian exporters are not standing still. Diversification of trade is alive and well in Canada's exporting community."
The survey was conducted in April 2012. A total of 1000 Canadian businesses participated, and the TCI was calculated on a total of 811 respondents.
For more information about EDC and the Trade Confidence Index, visit Trade Confidence Index.
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by more than 7,700 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and a recognized leader in financial reporting and economic analysis.