Sentiment among Canadian business leaders is running in the opposite direction as its American counterpart. While cooler global growth and the threat of rising interest rates have curbed sales and production forecasts for many nations, projections have actually improved for resource-rich Canada. The Business Outlook Survey report - released by the Bank of Canada on the Monday prior to the policy group’s rate decisoin - for the second quarter reported improvements from most of its major components, including past sales, future sales, employment and the environment for investment. The most closely watched subgauge of the report (future sales) recorded a 3.96 reading as 37 percent of respondents to the survey forecasted greater sales in the coming 12 months. The reading on sales over the past year stepped down for a second quarter though it was still in positive territory at 7 percent. However, comparing these two figures against readings from the past 5 years where readings in the 20s and 30s were printed, it is clear that Canada is still feeling the effects of unfavorable global trends. Nonetheless, there is considerable confidence in the strength of domestic demand and pricing capabilities. This has led business heads to keep their forecast for employment trends near highs at a positive 33 percent spread. At the same time, the opinion on investment jumped to a 22 percent reading for a five month high. Relief also comes from the credit conditions report where only a net 14 percent of the pool reported tighter lending conditions through the second quarter. On the other hand, costs of inputs over the coming 12 months surged to a multi-year high and there is considerable divergence in regional data. Altogether, this is a cautious yet optimistic outlook for the business sector; and it will help the Bank of Canada to hold its benchmark rate later this week. - John Kicklighter, Currency Analyst for DailyFX.com