UPDATE 1-Bank of Canada survey finds businesses still wary

Mon Jul 8, 2013 12:14pm EDT
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* Sales growth outlook still positive, less so than Q1 survey

* Improved U.S. demand helps but competition intense

* Business investment still seen growing

* Poloz has said U.S. demand should boost investment eventually

By Randall Palmer

OTTAWA, July 8 (Reuters) - Canadian businesses expect higher sales growth and more investment and employment in the year ahead, helped by improving U.S. demand, but they remain wary given the sluggish economy, a Bank of Canada poll showed on Monday.

The survey of senior managers, taken from May 21 to June 13, showed the balance of opinion on past sales had turned modestly positive and the future sales outlook was also somewhat positive, though less so than a quarter earlier.

"Expectations regarding the economic outlook remain muted. Firms continue to express concerns about the prospects for domestic demand," the central bank said.

"While many firms note that gradually improving U.S. demand bodes well for their sales outlook, they generally expect U.S. growth to be slow over the next 12 months and competitive conditions in the U.S. market to remain intense."   Continued...