The Ontario auto sector is the least confident in its future prospects, but energy and petroleum companies in the province have the most positive outlook despite depressed times in the industry, says a report from the Ontario Chamber of Commerce and the Mowat Centre think tank.

Just 53 per cent of businesses in the automotive manufacturing sector said they are confident in their own company’s economic outlook, followed closely by the engineering/construction/infrastructure sector at 54 per cent. That compares to the 62 per cent provincial average – which has tumbled from a high of 74 per cent in 2014, says the ‘Emerging Stronger 2016’ study released Tuesday.

Meanwhile the report found the sector in Ontario most confident in its future is energy and oil at 74 per cent, followed by financial services at 72 per cent. (Ontario is not a significant producer of petroleum but it’s an important supplier to Alberta’s oil patch, which has been struggling with rock bottom crude prices.)

“Businesses in the energy and petroleum sector may feel that the worst is now over and that things can only get better,” said Chamber president Allan O’Dette.

“Uncertainty throughout the global economy and specifically in the resources industry is further compounding concerns in the private sector, and it is important that public policy address the concerns of the business community,” he said.

Health care companies said they are most likely to plan an expansion over the next five years at 60 per cent, while just 35 per cent of the broader public sector sees growth in its area happening by 2020, it says.

Overall, less than one-third of businesses are confident in Ontario’s economy compared to nearly half, or 47 per cent, five years ago, the report found. And only 30 per cent of businesses surveyed said they believe the Ontario economy is going in the right direction today as opposed to 42 per cent in 2012.

Forty-six per cent of businesses said they plan to expand in the next five years, down 14 points from 2013, it says.

“The recently negotiated Trans-Pacific Partnership (trade deal) will give Canadian firms unprecedented access to global markets, but also poses serious challenges for the future of Ontario’s automotive sector,” warns the report.

The report calls on all levels of government to restore fiscal balance and build a more skilled workforce to compete globally.

Meanwhile another report released Tuesday from the Conference Board in Washington shows the U.S. is getting more confident in its economy. The Consumer Confidence Index rose to 98.1 in January from 96.3 in December due mainly to strong job market and low gas prices while shrugging off a recent selloff on stock markets, the board says.

The Chamber of Commerce’s annual survey, conducted by Leger, involved 1,310 respondents last November. The margin of error for the survey is within 2.71 per cent, 19 times out of 20.

By the numbers

30 per cent: Businesses confident in Ontario's economy

53 per cent: Companies in Ontario's auto sector that are confident in their future prospects

54 per cent: Portion of engineering/construction/infrastructure firms with a positive outlook

74 per cent: Energy and petroleum firms in Ontario positive about industry's future

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60 per cent: Health care companies planning an expansion in the province by 2020