The Week Ahead
One should not underestimate the negative impact that NAFTA uncertainty had on capital expenditures in Canada. In numerous conversations we had with CEOs over the past year, the trade dispute emerged as the chief factor behind their inaction. With the birth of the USMCA, trade uncertainty may be still an issue for some sectors, but overall has markedly diminished. So we should see some improvement in capital spending soon. And we need it. The capacity utilization rate, at over 85%, is at an eleven-year high. There is an urgent need to raise our productive capacity.