Canadian companies are hesitant to grow investments or increase hiring due to concerns about U.S. tariffs and global economic uncertainty, a new survey from the Bank of Canada (BoC) suggests.
The most recent quarterly business outlook survey conducted by the bank between Aug. 7 and Sept. 3, and released Oct. 20, found that business confidence and hiring across the country remains subdued due to the ongoing trade dispute with the United States. This includes a growing proportion of surveyed firms that are bracing for a potential recession.
“The share of firms planning for a recession in Canada—for example, by tightening their budgets or pausing investments—has increased slightly, from 28 percent to 33 percent [since last quarter],” the BoC notes in its report on the survey. “This share remains above the low levels seen in 2024, likely reflecting ongoing concerns about the impacts of trade tensions.”…