Bank of Canada Sees Budding Optimism Despite Weak Demand
- Firms’ inflation expectations ease but consumers’ views stuck
- Uncertainty is companies’ top worry due to rates, input costs
Bank of Canada surveys show business optimism is weak but improving, with fewer firms expecting a recession even amid rising concerns about uncertainty.
Photographer: David Kawai/BloombergThis article is for subscribers only.
Business sentiment is improving in Canada and fewer companies are expecting a recession, taking some pressure off policymakers as they debate when to cut interest rates.
A new Bank of Canada survey suggests that higher rates continue to weigh on activity, and the outlook for sales is “subdued”. But Canada’s large firms are less concerned about a steep decline in growth.