The Alberta business community is optimistic about the economy

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The latest results from the PwC Business and Consumer Confidence index are in.

 

According to our latest results from the PwC Business and Consumer Confidence Index, the Alberta business community’s confidence in the economy continues to rise, along with most of the indices. After a significant dip in the beginning of the year, the level of confidence has had positive momentum since March 2013, increasing 7%. The Index surveys more than 200 members of the Alberta business community.

“Many Albertans and Albertan businesses have faced hardships over the last several weeks in the wake of the flooding in Southern Alberta. It’s promising to see optimism in the market at the moment. ” says Ian Gunn, Alberta Private Company Services Leader at PwC.

The Index determines the level of confidence business leaders and the public have in the economy, now and for the future. It does this by tracking several indices. The indices we look at are:

  • future interest rate
  • future business conditions
  • future unemployment
  • current business conditions
  • fiscal conditions.

Impact of rising interest rates on borrowing

The latest results indicate a 17.8% decrease of confidence that future interest rates will stay stable. This reflects the recent increases in bond yields and the possibility of interest rate hikes. But, these early signs of interest rate hikes have yet to prompt heavy borrowing in the market.

The consumers we surveyed were asked a similar question about their debt commitments. In the short term (one year), close to two-in-five Albertans feel rising interest rates will impact their ability to meet their debt commitments. Almost half are concerned about their ability to pay their debts in the long term (five years) if the interest rates continue to rise.

Managing your risk

Business risk can take many forms; anything from inadequate asset protection, to tax audit vulnerability, to rising interest rates on borrowing. And as your business grows, these risks can become increasingly complex. Managing your risk can protect your company from financial harm and help maintain a strong place in the market. We can help you assess the risks in your business and work with you to put customized risk management practices in place. We are committed to helping owners and CEOs protect their business, reach their goals and create lasting value.

Get in touch and let’s talk about your business needs.