A pair of reports from the Bank of Canada pointed to declining business and consumer sentiment in the first quarter as the uncertainty over U.S. tariffs took their toll.
The central bank’s business outlook survey said Monday that 32 percent of firms are now planning with the assumption that a recession will occur in Canada over the coming year, up from 15 percent over the past two quarters.
“Uncertainty surrounding financial, economic and political conditions remains the top concerns for firms and rose sharply this quarter,” the report said.
A smaller proportion of businesses expected sales growth to improve over the coming year at 43 percent compared with 53 percent in the fourth quarter of 2024, the findings showed, while plans for investment in machine equipment declined….