Economic Optimism Continues Slide

Only nine per cent of business leaders are optimistic about prospects for the national economy over the next 12 months, a considerable drop from 52 per cent in third quarter of 2021, says the Chartered Professional Accountants of Canada (CPS Canada) ‘Business Monitor (Q3 2022)’ survey. Twenty-one per cent of leaders cite inflation as the top challenge to the growth of the economy. Increases in interest rates (16 per cent) and the state of the global economy (15 per cent) are the next most common challenges listed. Nearly three quarters indicate that inflation is hurting their business, with 37 per cent saying it would impact their company for at least another year. The proportion of respondents who are optimistic regarding their business over the next 12 months also dropped from 70 per cent in the third quarter of 2021 to 40 per cent this quarter.