The Globe and Mail reports in its Tuesday edition that the Bank of Canada's (BOC) latest quarterly survey of businesses showed Canadian firms are generally doing well and are operating closer to full capacity than they were in the previous survey (taken in late 2013). The Globe's David Parkinson writes the survey showed hiring plans are at their highest level in two years. Investment intentions on machinery and equipment, however, remain subdued. The problem, says the BOC, is the domestic side of the economy. Business executives say they have no confidence in demand at home. They hesitate to invest in expansion, unconvinced that the domestic economy can justify it. Despite seeing their costs go up, they do not believe their consumers can handle price increases. The Business Outlook Survey is the central bank's prime tool for studying the thinking of business leaders. The BOC has openly admitted that its statistics-driven models are failing to solve the unusually complex puzzle of this particular economic recovery, particularly around the perplexing lack of bounce-back in business investment and inflation. The Globe expects the BOC will hold the line on raising interest rates.