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August 27, 2024SURVEY ON BUSINESS CONDITIONS: Q3 2024 Statistics Canada has conducted its 17th iteration of the Canadian Survey on Business Conditions. In July and early August , Statistics Canada surveyed businesses to collect information on businesses' expectations, obstacles, plans and practices.
The results reported here are a selection of the impacts found for Nova Scotia businesses, by industry, by size of business (measured by number of employees), by age of business and by urban or rural location. There are comparisons of the Nova Scotia average (all industries, ages, sizes, locations) with the national and provincial averages. The horizontal axis in all charts measures the share of businesses reporting each outcome. The total for many outcomes does not add to 100% of respondent businesses as many replied that the outcome was not applicable in their circumstances.
Future outlook over the next 12 months
In Nova Scotia, 36.0% of businesses were very optimistic about the next 12 months; a further 45.8% were somewhat optimistic, 7.2% were somewhat pessimistic and 2.8% were very pessimistic. Business optimism was lower (and pessimism higher) at the national level. Businesses in the Atlantic Provinces and Quebec enjoyed more optimistic outlooks.
Business expectations for the next three months
The outlook for employment was stable for 80.6% of Nova Scotia businesses in the next three months. Rising employment is expected among 9.8% of Nova Scotia businesses while declining employment is expected by 9.7% of Nova Scotia businesses.
Most businesses in Nova Scotia (59.7%) expect stable job vacancies with more expecting rising vacancies (7.6%) then declining vacancies (4.8%). Rising vacancies were more widely expected in Nova Scotia's construction industries while falling vacancies were more widely expected in wholesale trade as well as administrative support/call centres.
The majority of businesses in Nova Scotia (63.6%) expect stable sales while 22.3% expect rising sales and 10.6% expect declining sales. Rising sales were more likely to be expected among construction businesses.
Prices are expected to be stable for 72.1% of Nova Scotia businesses while 18.4% expect rising prices. Only 5.7% of Nova Scotia businesses expect declining prices . Rising prices were expected more often among wholesale as well as mining businesses. Falling prices were a more prevalent expectation in agriculture, forestry and fishing businesses.
Over two thirds (70.5%) of Nova Scotia businesses expect stable demand while 19.9% expect increasing demand and 9.6% expect declining demand. Rising demand was more widely expected among manufacturing businesses while expectations of falling demand were most common among agriculture, forestry and fishing businesses.
Stable profitability is expected by 60.0% of Nova Scotia businesses. Expectations of falling profitability (22.6%) outweighed expectations of rising profitability (14.5%). Rising profitability was notably more widely expected among construction, manufacturing, wholesale and retail businesses. Falling profitability was more widely expected in accommodation and food services food as well as in agriculture, forestry and fishing businesses.
Rising operating income is expected by 17.8% of Nova Scotia businesses while higher operating expenditures are expected by 13.6% of Nova Scotia businesses. Stable operating income is expected by 68.6% of Nova Scotia businesses. Stable operating expenditures were expected by 58.2% of Nova Scotia businesses (rising: 34.9%, falling: 6.9%).
Cash reserves are expected to remain stable for 63.5% of Nova Scotia businesses while 9.4% expect rising cash reservices and 17.7% expect falling cash reserves.
Capital expenditures are expected to be stable for 57.6% of Nova Scotia businesses; rising for 18.7% and falling for 6.6%.
Training expenditures are expected to be stable for 57.1% of Nova Scotia businesses while 14.1% expect higher expenditures on training.
Most businesses in Nova Scotia (54.5%) expect stable marketing expenditures in the next three months while 9.2% expect rising marketing expenditures (particularly in information/culture and wholesale trade industries).
Although research and development (R&D) expenditures are not relevant for the majority of businesses, most businesses that conduct R&D expect stable spending in the next three months.
Although few Nova Scotia businesses participate directly in international trade, the majority of these expect stable imports and exports in the next three months.
Work location
Nova Scotia businesses were asked about the expected work locations of staff in the coming three months. Over 80% of Nova Scotia businesses expect staff to work exclusively or mostly at a primary worksite. About 12.7% of businesses expect their workers to be mostly or exclusively working remotely while a further 4.0% expect staff to be split between onsite and remote work.
Revenue growth - 3 year expectation
When asked about expected revenue changes in the coming three years, 44.3% of Nova Scotia businesses anticipate annual revenue growth under 10% per year. A further 8.0% of businesses expecte annual revenue growth in excess of 10% while 13.7% of businesses expect declining or stable revenues over the next three years.
Obstacles for businesses
As part of the Survey of Business Conditions, businesses were asked about their obstacles. Among Nova Scotia businesses, 23.3% reported no substantial obstacles expected in the next three months (up from the previous quarter). Businesses in Nova Scotia's finance/insurance were most likely to report no substantial obstacles. Across Canada, 19.8% of businesses reported no obstacles.
When asked what was the one most pressing obstacle for Nova Scotia businesses (across all industries), rising inflation (18.3%) and input costs (13.0%) were the most widely reported.
The most acutely-felt obstacles in Q3 2024 were cost-related. This category was reported by 63.3% of Nova Scotia businesses with the largest prevalence in transportation/warehousing industries. Input costs and general inflation were the most widely cited obstacles.
38.9% of Nova Scotia businesses reported some labour-related obstacles, such as labour force shortages as well as recruiting and retaining skilled employees . These were most prevalent in Nova Scotia's construction, wholesale and retail industries as well as among larger employers.
Supply-chain issues were reported as business obstacles by 14.4% of Nova Scotia's businesses, particularly in manufacturing, wholesale and retail industries. The prevalence of supply chain related obstacles continues to decline.
Market conditions, financing, regulatory barriers and technological limitations were less commonly cited obstacles.
Artificial intelligence
The majority of Nova Scotia businesses (71.0%) have no plans for using artificial intelligence in producing output over the next 12 months while 10.0% expect to make use of this new technology. Expected use of artificial intelligence was highest among professional/technical services businesses.
Source: Statistics Canada. Table 33-10-0889-01 Future outlook over the next 12 months, third quarter of 2024; Table 33-10-0859-01 Business or organization expectations over the next three months, third quarter of 2024; Table 33-10-0861-01 Most challenging obstacle expected by the business or organization over the next three months, third quarter of 2024; Table 33-10-0866-01 Average yearly revenue growth expected by businesses or organizations over the next three years, third quarter of 2024; Table 33-10-0878-01 Use of artificial intelligence (AI) by businesses or organizations in producing goods or delivering services over the next 12 months, third quarter of 2024; Table 33-10-0888-01 Percentage of workforce anticipated to work on-site or remotely over the next three months, third quarter of 2024
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