indicatorThe Twenty-Four

What goes up…business sentiment in Canada

Business confidence has slipped as recession fears have grown

By Rob Roach, ATB Economics 18 October 2022 1 min read

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?

The Bank of Canada's Business Outlook Survey shows that business confidence has softened since the end of 2021

The Bank of Canada's Business Outlook Survey shows that business confidence has softened since the end of 2021


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