Oil price collapse weighs further on Canadian business outlook

The Bank of Canada's Spring Business Outlook Survey (BOS) showed that business sentiment continued to deteriorate in the first quarter of 2015, as lower oil prices pinched the energy sector. The Bank did note that a majority of respondents are benefiting from stronger growth in the United States and the boost in competiveness from the weaker Canadian dollar.

The survey also pointed to an easing in credit conditions for businesses over the past three months. The Bank mentioned that firms that cited an easing in credit conditions "often" attributed it to modestly lower borrowing costs.

Survey indicated that overall business lending conditions were broadly unchanged, but tightened for the oil and gas sector. Tightening was seen in non-price conditions, which was attributable to the oil and gas sector, while price conditions eased slightly.

"The oil price collapse is taking a toll on Canada's economy, which we expect to show up most notably in an outright contraction in business investment in 2015. There is little in this report that would suggest a further easing by the Bank of Canada at its rate announcement next week." - said TD Economics in a report on Monday