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Business outlook worsened in Q3 amid higher interest rates: StatCan

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Statistics Canada says business economic outlook worsened in the third quarter as interest rates began to have a cooling effect on the economy.

In its quarterly report on financials statistics for enterprises released Wednesday, the agency says the ongoing labour shortage, downward trend in energy and metal prices, and depreciation of the Canadian dollar against the U.S. dollar all contributed to increased uncertainty and worries over an economic slowdown.

Read more: Canada’s economy will ‘slow considerably’ in 2nd half of 2022, budget officer says

It says Canadian corporations saw seasonally adjusted net income before taxes decrease by 8.1 per cent in the third quarter compared to the previous quarter, though it increased year over year.

Net income before taxes for oil and gas extraction was down 3.4 per cent as gas prices were lower during the quarter.

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Statistics Canada says the construction industry was less profitable in the third quarter, seeing its net income before taxes decline 11.1 per cent due to higher costs, especially wages and materials.

Financial corporations also saw net income before taxes go down by 11.6 per cent.

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