News Releases

HALIFAX, August 4, 2010 – A BMO study released today shows that the majority (77 per cent) of business owners¹ in Atlantic Canada are feeling an economic recovery is underway. The positive view of the economy is marked by 92 per cent saying they are actively investing in and/or spending on their business, indicating a renewed focus on opportunities for growth.

"Business spending on new equipment and machinery has increased since the fall, which is a step in the right direction," said Steve Murphy, Senior Vice-President, Atlantic Provinces, BMO Bank of Montreal. "This, combined with a move to increase training for employees and seize opportunities to boost productivity will help strengthen the competitive position for Canadian businesses at home and abroad. BMO is working closely with commercial clients to provide solutions and advice so they continue to build on this momentum."

Other highlights from the survey include:

• Businesses in the Atlantic provinces, Quebec, and Ontario are more likely to be actively investing in their business than those in Manitoba/Saskatchewan. Along with businesses in Western Canada, those in the Atlantic provinces are also more likely to be both spending on and investing in their businesses.
• The two key investment priorities for businesses in the Atlantic region are improving productivity and sales and marketing ;
• Four out of 10 (39 per cent) business owners in the Atlantic Provinces are waiting on the "sidelines";
• Fewer Atlantic businesses are planning to expand to other global markets in comparison to those in Manitoba/Saskatchewan and Ontario.

"In terms of productivity, we are finally starting to see some improvement," said Sal Guatieri, Senior Economist, BMO Capital Markets. "Overall, businesses have taken advantage of cheaper imported equipment–courtesy of the strong loonie–to boost competitiveness."

The Harris/Decima telephone poll was conducted from May 3rd to 19th, 2010 and is based on a sample of 427 Canadian businesses with between 50 and 499 employees and revenues between $5M and $75M annually. *Results have been weighted against the known universe for such Canadian businesses.* A sample size of 427 garners results that are accurate within ±4.7 percentage points, 19 times out of 20.

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¹In this release, "Businesses" refer to those that employ between 50-499 employees and have revenues between $5M and $75M annually.