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

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

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