BoC survey: Q2 balance of opinion on indicators of future sales is +15 (prev. +24 in Q1)

Business Survey

• Business survey indicator fell to -0.39 (prev. -0.35 in Q1).
• 44% of firms expect inflation to be above 3% for next 2 years (prev. 11% in Q1).
• 17% of firms expect Canada to be in a recession over the next year (prev. 9% in Q1).

Consumer Survey:

• Shows inflation expectations declined after Iran ceasefire was signed in mid-June
• Survey of consumers for next 12 months shows 54.6% of Canadians expect a recession (prev. 55.7% in Q1).
• Expectations for 5-year inflation have risen to 3.39% (prev. 3.02% in Q1).