"Bank of Canada Survey: Business Sentiment Sinks as Canadian Firms Face Falling Orders and Slow Growth"
Originally Published 2 years ago — by Bank of Canada
The Business Outlook Survey for the fourth quarter of 2023 indicates a sharp decline in business sentiment, with top concerns shifting to demand and uncertainty. Plans for abnormally large price increases have decreased, while demand and competitive pressures are impacting firms' price growth. More firms have experienced outright sales declines over the past year, and sales outlooks remain modest. Credit conditions are tightening, and more firms plan to repair and replace equipment rather than expand operations. Additionally, there is lower employment demand and less-intense labor shortages, while wage growth continues to trend downward and short-term inflation expectations are slowly decreasing.