- Overall survey indicator at the lowest since Q2 2020
- 53% of firms expect inflation over 3% for the next two years, down from 64% in Q2
- 27% of firms think it will take longer than three years to return to BOC’s 2% inflation target, down from 32% in Q2
- Future sales indicator at 0 vs +8 prior
- One third of firms expect Canada to be in recession next year, the same as in Q2
- more than 70% of firms say higher interest rates are negatively affecting them
- Firms report widespread easing in intensity of labor shortage
This is an important survey for the Bank of Canada and should push them further to the sidelines. The OIS market is still pricing in a hike for March, which is baffling to me because there are clear signs of a slowdown in Canada, particularly in real estate.
Futures sales have never been this bad outside recession
Firms are not seeing higher wages.