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Business, consumer sentiment subdued in Q2: Bank of Canada surveys

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OTTAWA — The Bank of Canada says business and consumer sentiment remained subdued during the second quarter of the year even as the country saw its first interest rate cut.

The central bank's survey of consumers shows financial stress remained high over the spring as many Canadians reduced spending and adopted pessimistic outlooks about the economy's future.

However, the survey found homebuying intentions were close to the historical average because many Canadians, including newcomers, planned to wade into the market soon. Meanwhile, the bank's survey of business owners found they remained more pessimistic than average and their investment spending plans are below average.Meanwhile, businesses linked to essential spending are faring better because they're seeing population growth continuing to benefit their sales.

 

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