Economic concern dampens Canada business confidence

Wed Aug 10, 2011 11:32am EDT
 
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OTTAWA (Reuters) - The confidence of Canadian business leaders dropped in June due to concerns about the outlook for the Canadian economy, the Conference Board of Canada said on Wednesday.

The Index of Business Confidence (2002=100) fell to 103.7 from 106.2 three months earlier and 109.5 at the end of 2010.

"While firms remain generally positive on their financial position and profitability, predictions about the future of the Canadian economy have deteriorated sharply," the Conference Board said.

"Just 30.9 per cent of respondents believe that economic conditions will improve in the next six months -- down from 40.6 per cent last quarter -- while the number of respondents who believe conditions will worsen increased 4 percentage points to 17 per cent."

The survey was taken during June, before the current turmoil and volatility on financial markets.

(Reporting by Randall Palmer; editing by Rob Wilson)