US EditionBusiness confidence still weak as tariffs hold back investment: BoC
Trade uncertainty and U.S. tariffs are suppressing investment and hiring, with one-third of businesses expecting a recession, according to the Bank of Canada survey.
- The Bank of Canada said its quarterly business outlook survey released on Oct. 20, 2025 found confidence across Canada remains weak due to persistent trade uncertainty from the United States.
- Tariffs and trade tensions are keeping Canadian firms from investing or expanding payrolls, while cost pressures, slowing demand and regulations rank among top concerns, the survey said.
- The surveys found nearly a third of Canadian businesses expect a recession, up five percentage points, while the business outlook indicator rose slightly to-2.28 in the third quarter.
- Firms are prioritizing routine maintenance over expansion, most Canadian firms do not plan to hire next year, and financial markets put around 85 per cent odds on a rate cut Oct. 29.
- Bank of Canada Governor Tiff Macklem said he expects growth to remain sluggish through the back half of the year after the Sept. rate action lowered the policy rate to 2.5 per cent.
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Canadian Businesses Struggling Amid US Tariff Uncertainty: Bank of Canada
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. T…
According to a survey by the Bank of Canada, business confidence is "moderate," partly due to trade uncertainty with the United States.
Some economists believe that the Bank of Canada is more likely to reduce its policy rate next week, after two central bank surveys revealed on Monday that U.S. tariffs continue to weigh heavily on businesses and consumers.
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