Business sentiment in the United States, Canada’s largest trading partner, has hit the lowest level in more than two years as executives continue to feel cautious about the economic situation in Canada.
According to a survey by Nanos Research for the American Chamber of Commerce, initially reported on by Bloomberg, senior executives of American firms with Canadian subsidiaries are anxious about a weakening sales picture in Canada since the end of last year, alongside an overall worsening economy.
The overall results follow alongside the strain in global growth which has largely been caused due to the chaos created through the trade dispute between China and the United States as well as the Brexit.
In the United States, recent results have shown that business hiring has dropped to a seven-year low.
While American business sentiments towards Canada have dropped enormously, the net remains positive.
“The best way to summarize how CEOs of American enterprises in Canada feel is that everything is OK—their enterprises are OK—but there is some anxiety about the future strength of the Canadian economy,” Nanos said.
The survey was conducted between August 6 and October 8, before the recent Canadian election.
While American sentiments have dropped, a new poll published by the Bank of Canada shows that Canadian businesses have shown an uptick in business sentiment, although that appears concentrated in the East and B.C., largely missing the Prairies.
As both countries continue to awkwardly move forward, there appears to be at least some light at the end of the tunnel. Nearly a full year has passed since Canada, the US, and Mexico signed the replacement deal to NAFTA, and the United States appears prepared to pass the deal through Congress by November.