OTTAWA — The Conference Board of Canada says domestic companies will continue to enjoy good prospects for profits this year.
The think tank’s leading indicator of industry profitability rose for the eighth straight month in April, up 0.3 per cent, as 39 of 49 industries saw gains.
That is slightly lower than the previous two months but still signals improvement in corporate profits through the summer months.
The Conference Board says high prices for grains and oil seeds, petroleum products, and metals are key factors that point to an improving profitability for many goods-producing industries.
Firms are also subject to a smaller tax bite this year, with the federal rate falling to 16.5 per cent from 18 per cent.
Some industries that use raw materials, such as airlines, have been hurt by the high prices, however.
As well, the think-tank points out that while the outlook for the global economy is positive, the recovery is still fragile and susceptible to unexpected shocks such as conflict in the Middle East and the debt crises in some European countries.