Also, the Business Outlook Survey (BOS) indicator also declined this quarter, with results for several survey questions moving down from elevated levels.
“Part of the decrease in business confidence reflects a moderation in firms’ sales outlooks. Some businesses linked to housing activity expect higher interest rates to hurt their sales. After experiencing a sharp recovery from the pandemic, other firms now anticipate a slower—although still healthy—pace of sales growth,” said the Bank of Canada.
“Businesses expect their price increases to moderate due to downward pressure on prices for commodities and other input goods. They also expect their wage increases to soften from high levels. Firms’ short-term inflation expectations remain above the Bank of Canada’s inflation target.
