Confidence among Canadian exporters fell in the fourth quarter of 2010, according to a report released Wednesday by Export Development Canada.
EDC's quarterly Trade Confidence Index dropped to 74.1 last fall - down from 78.8 in the spring of that year. Despite the decline, the [i]ndex remains consistent with growth expectations for the coming year and reflects exporters diminished expectations for a more rapidly improving economy.
"Trade confidence staged an impressive run that took it from the depths in the fall of 2008 to its highest level in eight years in the spring of 2010, thanks to a rebound in export sales and a resilient domestic economy," said Peter Hall, EDC's chief economist. "Optimism cooled at the tail end of 2010 as perceptions of Canada's economy weakened and doubts about the international situation grew."
While the Trade Confidence Index fell, others have pointed out its significant gain over the record low of 61 in 2008, which analysts claim marked the crux of the recession.
What's more, recent gains in lending confidence among the nation's small business lenders also have many economists feeling more optimistic. Canada also announced this week that it plans to triple its business presence in India over the next five years, marking a significant boost for economic relations with the emerging economy.
