Bank of Canada survey shows weak business conditions persist
CREDIT: Bank of Canada
The Bank of Canada released its quarterly survey of executives that showed business conditions continue to be on the weak side. The results will provide room for the central bank to continue cutting interest rates as soon as next week, when officials are next scheduled to meet on policy.
The survey is conducted through interviews with senior management of about 100 firms. Here is the Bank of Canada’s overview of the results:
Firms continued to remain more pessimistic than average, with weak sales expectations for businesses tied to discretionary spending
Investment spending plans are also below average, with business citing “weak demand, elevated interest rates, uncertainty about the business environment and the high cost of machinery and equipment”
Labour shortages are no longer an issue though few firms are planning to reduce headcounts
Businesses expect a slowdown in price inflation to below 3 per cent
