A new report by the Bank of Canada suggests business sentiment is subdued, but it remains up from its low seen in the second quarter of last year.
The central bank’s quarterly business outlook survey says trade-related uncertainty and the broad economic effects of tariffs continue to weigh on confidence.
It says businesses continue to cite uncertainty surrounding financial, economic and political conditions, slowing demand, and cost pressures as their most pressing concerns.
The report says businesses reported weak sales growth over the past 12 months, with one-third citing a decline in their sales volumes.
However, it says the balance of opinion on future sales indicators has turned positive.
The report comes ahead of the Bank of Canada’s next interest rate decision and monetary policy report expected on Jan. 28.