Canadian exporter confidence slips

OTTAWA—Canadian companies that sell abroad are feeling somewhat less bullish about near-term prospects, according to a semi-annual report by Export Development Canada (EDC).

EDC’s Trade Confidence Index (TCI) measures how Canadian exporters and investors are feeling about their business opportunities in the next six months.

The overall TCI score, a summary of the state of Canadian exporter confidence, fell by a marginal 1.4 points to 75.8 after three consecutive increases that began in the spring of 2013.

“Continued global instability, notably in the Middle East, and currency volatility have cooled the steady rise in Canadian exporter confidence over the past six months,” said Peter Hall, EDC’s chief economist. “Still, exporter confidence in general remains high, and the appetite for new markets continues to grow.”

Canadian exporters are now less optimistic than they were in the spring about domestic sales, global economic conditions and international business opportunities.

“It’s a strange turn of events,” said Hall. “Exporters are expecting stronger sales, but unsettling international developments have tempered their enthusiasm.”

Global instability and continued conflict in the Middle East topped the list of concerns with Canadian companies that had a negative view.

“At its core, I believe that the retreat of optimism is slight enough to suggest that it’s more about psychology than sales,” added Hall. “It’s likely feeding off the nasty headlines of late.”

EDC is Canada’s trade bank, providing financing for small Canadian companies that sell to customers outside of Canada.