A pair of reports from the Bank of Canada say tariff-related uncertainty continued to put a damper on business and consumer sentiment in the second quarter, but the worst-case trade scenarios previously anticipated seem less likely.
The central bank’s business outlook survey said 28 percent of firms are now planning for a recession in Canada, down from 32 percent last quarter but still up from 15 percent over the previous two quarters.
Sales outlooks remain pessimistic overall due to widespread concerns about the effects of a slowing economy, but the report says recent monthly surveys suggest some improvement in firms’ outlooks, especially among exporters because few have been directly affected by current tariffs….