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

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The Bank of Canada's business outlook survey indicator fell in the third quarter as companies expect sales growth to slow over the coming year. The indicator summarizing business sentiment was at its lowest level in more than a decade.

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

The survey also suggested that inflation expectations among businesses have edged down, though they remain above pre-pandemic levels. "Those expecting more adverse effects ahead are less likely to plan major purchases," the consumer report said. The central bank kept its key interest rate target on hold at five per cent last month but has said repeatedly that it is prepared to raise rates again if needed to bring inflation back to its target of two per cent.

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