Business, consumer sentiment subdued as economy slows, Bank of Canada surveys find

The central bank's survey of consumers released Monday shows financial stress remained high over the spring and Canadians' outlook for the future economy was"pessimistic."

They blamed their sentiment on elevated interest rates, the persistence of high costs and weak demand, particularly for non-essential goods and services. The rate has sat at 4.75 per cent since June, when the bank made its first cut since March 2020. Its next rate decision is scheduled for July 24. Businesses across all regions and sectors also reported the labour market has continued to ease and the share of firms experiencing worker shortages is near survey lows."This survey made it even clearer that Canada’s labour market is no longer tight, and might actually be loosening significantly," he said.

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