BoC Business Outlook Survey: Business Sentiment Weakens, Inflation Expectations Edge Higher
- Business sentiment weakened after improving over the previous three quarters
- Business Outlook Indicator fell to -0.39 in Q2 from -0.35 in Q1
- Future sales balance of opinion fell to 8 in Q2 from 25
- Second-quarter sales outlooks softened, though export prospects improved
- Share of firms expecting higher input and selling prices increased
- Consumers' inflation expectations edged higher, driven by energy prices
- Concerns about prices and the economy continue to weigh on consumer spending
- Consumer views of the labour market improved modestly from the first quarter
- Oil producers increased investment and production in response to higher oil prices
- BoC introduced two new Business Outlook Survey indicators covering activity and prices