-- The Bank of Canada published its Q1 Business Outlook Survey (BOS) on Monday, after needing follow-up calls as a consequence of the Middle East war.
Results of follow-up calls suggest that many firms are already facing higher input costs due to rising prices for energy, fertilizer and freight linked to the Iran war, noted the BoC.
Others expect increases in the coming months as these costs are passed on by suppliers, added the central bank. Most firms' outlooks for sales, investment and employment are roughly unchanged.
The BOS was conducted from Feb. 5 to 25, before the Iran war began. This quarter's BOS also incorporates results from follow-up calls with participants conducted between March 18 and 27, after the start of the war in the Middle East, with firms selected based on their exposure to the economic effects of the war.
Survey evidence, gathered mostly before the war in the Middle East, shows that business sentiment improved slightly from last quarter to levels similar to those from before the trade conflict with the United States began, according to the BoC.