Slumping oil prices dampen companies' expectations: Bank of Canada

Canada's parliamentary budget office says Ottawa will stay in a deficit in the coming fiscal year if battered oil prices stay near their current lows.

OTTAWA - The Bank of Canada says the sting of lower oil prices has dampened the confidence of companies when it comes to future sales growth, investment and hiring.

The bank's latest business outlook says that cheaper crude has reduced sales expectations beyond the energy sector.

The quarterly sampling of 100 representative companies says uncertainty about the price of oil has dimmed expectations when it comes to future investments in machinery and equipment for the coming year.

The influential survey also says the outlook for hiring has diminished to its lowest level since 2009, although it remains positive.

On the other hand, the survey found a growing number of companies expected to see lower input costs because of cheaper oil prices -- though some anticipated the lower Canadian dollar to partially offset those gains.

The bank says more businesses expected the weaker exchange rate to help boost output prices over the coming 12 months.