The Bank of Canada's Q1 Business Outlook Survey (BOS) showed "solid" results on the growth front, despite ongoing trade uncertainty and ahead of the oil price spike, said Bank of Montreal (BMO).
Notable improvements were seen in sales growth expectations, machinery and equipment investment plans and future employment levels, noted the bank after Monday's BOS release.
That lifted the overall BOS indicator to the best level since Q1 2023, pointed out BMO.
While still a shade below zero, this level is more consistent with potential growth in Canada, which the bank calls "the 1.5%-to-2% range," than the sub-1% growth seen in the year through Q4 2025.
The first half of 2026 is still going to look "sluggish" from a growth perspective but, if all goes well on the trade and geopolitical fronts, the second half could look "firmer," stated BMO.
These results suggest Canada is moving in that direction, according to the bank.