Canadian Survey on Business Conditions Report (Q3 2024)

Short-term business sentiment declined in Canada in the third quarter of 2024. The BDL’s Business Expectations Index registered a disappointing 98.4, down 3.4 points from last quarter, with weaker outlooks for sales and employment dragging down the headline number.

The good news, however, is that with the economy still growing and the Bank of Canada increasingly winning the war against inflation, businesses expect a “soft landing” with employment growing over the next three months ─ albeit modestly. Equally important, this survey reveals new evidence that cost pressures are moderating, and firms’ pricing behaviour is normalizing. The central bank has been watching this closely. If these improvements continue, this trend could eventually hasten more aggressive interest rate cuts to support the weak economy.