The Bank of Canada says business and consumer confidence remained subdued in the second quarter, even as the country saw its first interest rate cut.
The central bank’s survey of consumers shows financial strains remained high in the spring, as many Canadians cut back on spending and adopted a pessimistic outlook about the future of the economy.
However, the survey found that home buying intentions were close to the historical average, as many Canadians, including newcomers, planned to enter the market soon.
Meanwhile, the central bank’s survey of business owners indicated that they remained more pessimistic than average and that their capital spending plans were below average.
Companies tied to discretionary spending had particularly weak sales expectations.
Businesses tied to essential spending are doing better as they see population growth continuing to benefit their sales.
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