Business gloom deepens as sales moderate, Bank of Canada survey finds

Business gloom deepens as sales moderate, Bank of Canada survey finds
The Bank of Canada building is pictured in Ottawa on Tuesday, Dec. 6, 2022. The Bank of Canada released its latest quarterly update on business sentiment.

The Bank of Canada says its business outlook survey indicator fell in the third quarter as companies expect sales growth to slow over the coming year.

The bank’s business outlook survey report says the indicator was at its lowest level in over a decade, except for a brief period early in the COVID-19 pandemic.

The report found the negative effects of rising interest rates are spreading with more businesses thinking higher rates will constrain sales and investment plans.

The survey also suggested that inflation expectations among businesses edged down but remained higher than before the pandemic.

Meanwhile, the bank’s Canadian survey of consumer expectations suggested consumers’ expectations of inflation remain elevated with the gap between perceptions and actual inflation unusually wide.

It says the rising cost of living remains the most pressing concern for consumers.

READ ALSO: B.C. Premier Eby calls on Bank of Canada to halt interest rate hikes

This report by The Canadian Press was first published Oct. 16, 2023.

The Canadian PressThe Canadian Press

Recent Stories

Send us your news tips and videos!