Canadian business sentiment improved in the third quarter of 2026, with firms reporting stronger sales expectations and solid investment plans, according to the Bank of Canada's latest Business Outlook Survey released Monday. However, renewed trade tensions with the United States and rising energy prices have dampened business confidence, pushed inflation expectations higher and weakened export and investment outlooks. The survey also found hiring intentions remain weak, while roughly half of businesses facing elevated costs plan to pass some or all of those increases on to consumers, raising concerns about persistent inflationary pressures.

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