The latest results from the Bank of Canada’s Business Outlook Survey* show that business confidence in Canada has been on the wane.

After peaking during the fourth quarter of 2021 at 5.88, the Business Outlook Survey indicator** was down to 1.69 as of the third quarter of 2022.

While the recent reading remains a major improvement over the level of business confidence seen at the start of the pandemic when the indicator got as low as -6.32, the downward trend reflects fear of recession that has been building since the summer.

According to the report accompanying the survey results, “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.”

*Each quarter, the Business Outlook Survey results are based on interviews with senior management of about 100 firms.

**The Business Outlook Survey indicator gauges overall business sentiment.

Answer to the previous trivia question: According to the National Inventors Hall of Fame, Charles Hull is the inventor of stereolithography, the first commercial rapid prototyping technology commonly known as 3D printing.

Today’s trivia question: Measured by annual revenue, what is the largest company in Germany?