Business sentiment weak, but inflation expectations easing, BoC surveys show

Canadian businesses are growing less concerned about inflation, but they continue to expect subdued sales and remain reluctant to invest or hire workers, according to a survey by the Bank of Canada.

As a result, companies remain hesitant to grow their operations, either by investing in new machinery and equipment or adding to their headcount. The survey, which was conducted from Aug. 8 to Aug. 30, found that businesses are focusing on replacing and repairing equipment “rather than on expanding production or improving efficiencies.”

Nearly two-thirds of the firms surveyed think inflation will be between 2 per cent and 3 per cent over the next two years. That’s good news for the central bank, which has worked hard to anchor inflation expectations following the surge in prices in 2022 and 2023. The survey found that consumers are becoming less pessimistic about their financial situation. However, more than half of the respondents still expect a recession in the next year and most plan to reduce their spending and save more.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canadian companies see sluggish conditions, hope rate cuts will boost demand: BoC surveyOver the next 12 months, 43% of businesses expect the rate of increase in sales volumes to be better than the previous 12 months, with 30% predicting a decline
Source: globeandmail - 🏆 5. / 92 Read more »

5 things to watch for in the Canadian business world next weekHer are five things to watch for in the Canadian business world in the coming week:
Source: CP24 - 🏆 30. / 67 Read more »

Five things to watch for in the Canadian business world this weekThis week will see several important events impacting the Canadian business landscape, including Bank of Canada Governor Tiff Macklem's appearance at a forum, a Conservative motion of non-confidence against the Liberal government, and key earnings releases from BlackBerry. Investors will also be watching CIBC's annual Eastern Institutional Investor Conference and Statistics Canada's release of GDP figures for July.
Source: timescolonist - 🏆 15. / 75 Read more »

Five things to watch for in the Canadian business world in the coming weekTORONTO — Five things to watch for in the Canadian business world in the coming week: Investment conference Principles for Responsible Investment will hold its annual PRI In Person annual conference in Toronto this week.
Source: SooToday - 🏆 8. / 85 Read more »