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February 28, 2025SURVEY ON BUSINESS CONDITIONS: Q1 2025 Statistics Canada has conducted its 19th iteration of the Canadian Survey on Business Conditions. In January and early February, 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, 33.3% of businesses were very optimistic about the next 12 months; a further 47.6% were somewhat optimistic, 10.0% were somewhat pessimistic and 1.9% were very pessimistic. Business optimism was lower (and pessimism higher) at the national level.
Business expectations for the next three months
The outlook for employment was stable for 84.2% of Nova Scotia businesses in the next three months. Rising employment is expected among 10.1% of Nova Scotia businesses while declining employment is expected by 5.7% of Nova Scotia businesses.
Most businesses in Nova Scotia (57.6%) expect stable job vacancies with more expecting declining vacancies (5.1%) then increasing vacancies (3.5%). Rising vacancies were more widely expected in Nova Scotia's accommodation/food services, real eastate/leasing and retail industries, while falling vacancies were more widely expected in mining/oil/gas and finance/insurance.
The majority of businesses in Nova Scotia (68.0%) expect stable sales while 16.7% expect rising sales and 11.7% expect declining sales. Rising sales were more likely to be expected among manufacturing, wholesale, finance/insurance and arts/recreation industries.
Prices are expected to be stable for 64.7% of Nova Scotia businesses while 28.8% expect rising prices. Only 2.3% of Nova Scotia businesses expect declining prices . Rising prices were expected more often among wholesale and retail businesses. Falling prices were a more prevalent expectation in information/culture, finance/insurance and real estate/leasing businesses.
Almost three quarters (74.2%) of Nova Scotia businesses expect stable demand while 18.4% expect increasing demand and 7.4% expect declining demand. Rising demand was more widely expected among construction and arts/recreation businesses while expectations of falling demand were most common among mining/oil/gas and information/cultural industries.
Stable profitability is expected by 59.7% of Nova Scotia businesses. Expectations of falling profitability (23.1%) outweighed expectations of rising profitability (12.8%). Rising profitability was more widely expected among finance/insurance businesses. Falling profitability was more widely expected in agriculture/forestry/fishing as well as accommodation/food service businesses.
Rising operating income is expected by 16.3% of Nova Scotia businesses while higher operating expenditures are expected by 35.5% of Nova Scotia businesses. Stable operating income is expected by 71.2% of Nova Scotia businesses. Stable operating expenditures were expected by 60.3% of Nova Scotia businesses.
Cash reserves are expected to remain stable for 60.3% of Nova Scotia businesses while 4.3% expect rising cash reservices and 22.1% expect falling cash reserves.
Capital expenditures are expected to be stable for 64.4% of Nova Scotia businesses; rising for 12.0% and falling for 6.4%.
Training expenditures are expected to be stable for 57.5% of Nova Scotia businesses while 13.3% expect higher expenditures on training.
Most businesses in Nova Scotia (60.1%) expect stable marketing expenditures in the next three months while 9.4% expect rising marketing expenditures (particularly in manufacturing, information/culture and retail 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 (30.6%) 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. 87.2% of Nova Scotia businesses expect staff to work exclusively or mostly at a primary worksite. About 7.6% of businesses expect their workers to be mostly or exclusively working remotely while a further 5.2% expect staff to be split between onsite and remote work.
Obstacles for businesses
As part of the Survey of Business Conditions, businesses were asked about their obstacles. Among Nova Scotia businesses, 24.4% reported no substantial obstacles expected in the next three months (up from the previous quarter). Businesses in Nova Scotia's personal/repair services and finance/insurance industries were most likely to report no substantial obstacles. Across Canada, 20.8% of businesses reported no obstacles.
When asked what was the one most pressing obstacle for Nova Scotia businesses (across all industries), inflation (13.0%) along with recruiting skilled employees (12.3%) were the most widely reported.
The most acutely-felt obstacles in Q4 2024 were cost-related. This category was reported by 58.1% of Nova Scotia businesses with the largest prevalence in accommodation/food service and retail industries. Insurance costs, rising interest/debt costs and general inflation were the most widely cited obstacles.
Labour-related obstacles were reported by 39.6% of Nova Scotia businesses, including: labour force shortages as well as recruiting and retaining skilled employees. These were most prevalent in Nova Scotia's health/social (including daycare), accommodation/food services and retail industries.
Supply-chain issues were reported as business obstacles by 13.5% of Nova Scotia's businesses, particularly in manufacturing, retail and wholesale industries. The prevalence of supply chain related obstacles continues to decline.
Market conditions, financing, regulatory barriers and technological limitations were less commonly cited obstacles.
Source: Statistics Canada. Table 33-10-0914-01 Future outlook over the next 12 months, fourth quarter of 2024; Table 33-10-0891-01 Business or organization expectations over the next three months, fourth quarter of 2024; Table 33-10-0892-01 Business or organization obstacles over the next three months, fourth quarter of 2024; Table 33-10-0893-01 Most challenging obstacle expected by the business or organization over the next three months, fourth quarter of 2024; Table 33-10-0913-01 Percentage of workforce anticipated to work on-site or remotely over the next three months, fourth quarter of 2024