By Steve Scherer and David Ljunggren
OTTAWA, Jan 15 (Reuters) – Canadian firms expect sales to slow as interest rates crimp consumer spending and they see inflation easing despite increased concerns over wages, the central bank said on Monday in a fourth quarter survey.
Some 38% of businesses expect a recession over the next year, up from a third in the previous Bank of Canada survey, and 61% of consumers see a recession, compared with 55% previously.
Businesses reported a decline in their order books compared with a year earlier, and more firms expect wages to increase over the coming year than the previous quarter.
The business outlook indicator turned slightly more positive in the final quarter of 2023, rising to -3.15 from -3.45, as expectations for input and output prices eased.
“Firms’ pricing behavior is slowly returning to normal,” the survey said. “Still, wage growth on average is expected to be higher than normal over the next…
