Canadian businesses are expected to increase capital spending this year by 3.3 percent, reaching a total of $349.1 billion, according to a report released last week by Statistics Canada.
The heightened budget proposals among the nation's companies were spurred by growing a demand for commodities, with the mining and energy sectors leading the way.
However, few experts believe the increase in capital spending will be enough to drive the economic recovery entirely.
"Those awaiting a Canadian capital spending surge to lead the economy and unleash a burst of productivity will be sorely disappointed today," said Douglas Porter, deputy chief economist at BMO Capital Markets.
However, Porter was not pessimistic about the study's findings, pointing how previous years' reports have not been as immediately evident of current or future economic conditions.
"Last year's actual rise in capital spending of 10.3 percent, turned out to be far above the initial estimates of a 4.4 percent rise," he added. "Perhaps we'll see a repeat performance this year."
The government's economic stimulus efforts are set to expire this year, amid continuing drops in corporate income tax rates, suggesting conditions may prove shaky for some time.
