News Releases

TORONTO, August 4, 2010 – A BMO study released today shows that the majority (77 per cent) of Canadian business owners are feeling an economic recovery is underway. The positive view of the economy is marked by 80 per cent saying they are actively investing in and/or spending on their business, indicating a renewed focus on opportunities for growth.

"Canadian business spending on new equipment and machinery has increased since the fall, which is a step in the right direction," said Gail Cocker, Senior Vice-President, Commercial Banking, 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 Western Canada and the Atlantic provinces are more likely than those in Quebec to be both spending and investing
• Top three triggers to spend and/or invest are: increasing cash flow (22 per cent), U.S. recovery from the recession (19 per cent) and rise in consumer confidence (14 per cent)
• Businesses in Manitoba/Saskatchewan and in Ontario are more likely than those in Atlantic Canada to name global markets expansion as a top priority
• Nearly 90 per cent of businesses in Manitoba/Saskatchewan and 79 per cent in Western Canada say they are feeling the economic recovery

"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.

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