All Canadian executives surveyed for the EY Global Capital Confidence Barometer expect the domestic economy to improve over the next 12 months and 99% believe the same for the global economy.
The 21st bi-annual survey also showed that 81% of executives surveyed do not expect an economic slowdown within the next year despite speculation of a recession in the media.
EY also found that confidence is also strong at the micro level “with 88% anticipating revenue growth and 91% expecting net profit growth in 2020.”
However, when it comes to dealmaking, the executives were cautious. For the first time in the survey's history, dealmaking appetite dropped below 45% with just 35% of Canadian executives planning to pursue M&A in the year ahead, says EY This is being largely influenced by the mining and metals sector.
"Canadian executives are optimistic but considering growth opportunities carefully," says Doug Jenkinson, Partner in EY Canada's Transaction Advisory Services practice. "Geopolitical uncertainty and potential impacts — including trade disputes, climate change-related policies and regulatory uncertainty — are subduing deal intentions in the short-term."
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