The Bank of Canada said Monday that its business outlook survey indicator fell in the third quarter as companies expect sales growth to slow in the year ahead.
The central bank’s Business Outlook Survey indicator fell to its lowest level in more than a decade, except for a brief period at the start of the COVID-19 pandemic.
The report finds that the negative effects of rising interest rates are spreading, and a growing number of companies believe that higher rates will limit their sales and investment plans.
The survey also suggests that businesses’ inflation expectations have fallen slightly, but remain higher than before the pandemic.
Furthermore, the Bank of Canada’s Canadian survey of consumer expectations suggests that consumers still expect inflation to remain high in the next 12 months, and that the gap between their perceptions and actual inflation is unusually wide.
According to this survey, the rising cost of living remains consumers’ most pressing concern.
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