In its quarterly report on financials statistics for enterprises released Wednesday, Statistics Canada said the ongoing labour shortage, downward trend in energy and metal prices, and depreciation of the Canadian dollar against the U.S. dollar all contributed to increased uncertainty and worries over an economic slowdown.
Net income before taxes for oil and gas extraction was down 3.4 per cent as gas prices were lower during the quarter. The construction industry was less profitable in the third quarter, seeing its net income before taxes decline 11.1 per cent due to higher costs, especially wages and materials, according to the agency. The sector saw provision for credit losses rise by 151 per cent in the third quarter due to unfavourable changes in the economic outlook, Statistics Canada said.
Amid rising food costs, the companies manufacturing food, soft drinks and ice saw their average net profit margin go from a pre-2020 average of 5.3 per cent to an average of 5.4 per cent so far in 2022.