'Things are dismal': Canadians' view of economy deteriorates on eve of Bank of Canada rate decision, poll finds
Canadians’ view of the state of the economy continues to deteriorate, a new poll suggests, just as the Bank of Canada prepares to announce its latest interest rate decision.
A survey by Maru Public Opinion found the mood about the economy continued to sour over the summer, with only 33 per cent of people saying they believe the national economic outlook will improve over the next 60 days, down from 38 per cent in July and 41 per cent in the May edition of the poll of approximately 1,500 Canadians.
People are also more pessimistic about the prospects for their local economies, with 35 per cent expecting them to improve over the next two months, down from 40 and 41 per cent in the previous months.
“The sentiment reality: Things are dismal,” said John Wright, executive vice-president of Maru Public Opinion in a press release accompanying the latest results of the consumer sentiment survey, which was conducted from Aug. 25 to Aug. 27.
The sentiment reality: Things are dismal
The results offered an echo of the latest GDP data from Statistics Canada that showed the economy contracted 0.2 per cent annualized in the second quarter. GDP slowed due to a drop in housing investment, smaller inventory accumulation, and slower international exports and household spending, the data agency said.
Analysts and the Bank of Canada had forecast GDP to grow 1.2 per cent and 1.5 per cent, respectively, in the second quarter.
Early estimates for July indicated GDP was flat, StatCan said.
The GDP shocker and an increase in the unemployment rate in July to 5.5 per cent have left most economists expecting the Bank of Canada to hold rates at five per cent, the highest level since 2001, when it meets on Sept. 6. The bank has increased its benchmark
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