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Highlights of Consumer and Business Surveys

BOC
  • Record 84% of firms expect inflation to exceed 3%.
  • A larger portion of income earned by consumers is now spent on basics. This has translated into a decline in demand for products and services across various sectors of society.
  • Consumers remain largely concerned about inflation, including some concern about the implementation of tighter monetary policy. 
  • Business sentiment weakens as the increase in interest rates results in the softening of firms' sales expectations and investment plans.
  • Firms view the rise in interest rates and subsequent lowering of household spending capacities as reasons for Canada to be in a recession during the upcoming 12 months.
  • Businesses expect their sales growth rate to slow.

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