BoC: Businesses in Canada Expect Weak Demand

The overall Business Outlook Survey indicator fell sharply, with most constituent indicators declining to levels well below their historical averages, according to the Bank of Canada (BoC) Business Outlook Survey for the summer of 2020.

Businesses in Canada expect weakness in domestic and foreign demand due to the effects of the COVID‑19 pandemic and the low oil prices.

The report further noted that forward-looking sales indicators have collapsed.

Although some companies that have laid off workers plan to refill some positions over the next year, many hiring plans remain muted over COVID-19-related uncertainty, the Canadian Press reported.

One-third of businesses have used a federal wage subsidy to reduce or avoid layoffs, according to the Canadian central bank outlook report.

In addition, concerns among workers about losing their job reached its highest level.