Canadian business leaders appear to be preparing to make major investments into equipment in a move that will increase the country's productivity, the Bank of Canada has said.
A survey by the Bank of Canada as part of the latest quarterly business outlook found many firms said they plan to invest in modernizing their machinery and equipment over the next year.
Forty-six per cent said they would spend more, while only 10 per cent said they would spend less — a 36-point differential that is a record for the central bank's survey on this question.
"Following a period of restraint in investment expenditures, many firms reported plans to resume more normal levels of spending," the bank said in its analysis.
"The increase in this indicator is widespread across all regions and sectors."
Making investments in new technology and infrastructure are key to productivity gains, so the increase in capital spending expectations are further encouragement for the health of the economy.
Earlier this year, Central bank governor Mark Carney called out to corporate leaders to take advantage of government breaks, lower taxes, the strong currency and record-low interest rates to prepare for the competitive nature of the post-crisis economy.
Canada is also becoming increasingly attractive to foreign investors, particularly for investors who also wish to migrate permanently. Canadian investor immigration numbers have steadily increased over the last few years.