BUSINESS

Study finds Canadian businesses more reliant on U.S. trade

The Canadian Press Published Thursday, September 27, 2012 9:57AM EDT Last Updated Thursday, September 27, 2012 10:08AM EDT

In this Sunday, April 12, 2009 photo, the American flag waves in Rockville, Md. (AP Photo/J. Scott Applewhite)

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TORONTO -- A study of Canadian businesses done for Bank of Montreal suggests there's increased confidence in the U.S. economy that will translate into greater reliance on trade with this country's biggest market and closest neighbour.

An annual survey, conducted by Pollara for BMO, found 39 per cent of the respondents indicated they were reliant on trade with the United States -- up eight percentage points from last year.

Reliance on trade with Asia was a distant second at 16 per cent, followed by Europe at 13 per cent and Mexico at eight per cent.

The study was based on a statistically small sample -- 500 business owners, contacted by telephone between Aug. 13 and Sept. 5

The bank said the survey suggests Canada's economic reliance on the United States is returning to historical norms as the North American economy improves.