More than 70 per cent of Canadian consumers and two thirds of business firms think a recession is likely in the next 12 months, according to Bank of Canada surveys.
Nearly one third of firms expect their rate of sales to decline over the next year, according to the Business Outlook Survey released by the central bank on Monday.
Businesses are attributing the slower demand to rising interest rates, reduced household spending and expectations for a recession. Compared to the last survey conducted by the central bank, fewer firms are reporting domestic demand as a driver to invest.
Despite an anticipated economic slowdown, most businesses think it will be mild. Nearly 70 per cent of firms expect their rate of sales to remain the same or grow over the next 12 months.
In December, the Canadian economy added 104,000 jobs. Firms are taking a more cautious approach to hiring, but still almost half of firms plan to add staff over the next year to meet demand.
“We don't expect to see a deep decline in economic activity,” said Pedro Antunes, the Conference Board of Canada chief economist. “Not recessions like we've seen in the past where the bottom falls out of consumer spending and we end up with job losses.”
The majority of Canadian consumers are finding it difficult to access credit, according to the BoC’s Canadian Survey of Consumer Expectations released on Monday. Wage growth expectations have dipped and nearly half of Canadian workers don’t expect their earnings to catch up to the recent inflation.
"I spend a lot of money to buy little things," said one survey respondent.
In response to higher inflation, Canadian consumers are cutting back the most on travel, accommodation, food service and recreation, according to the survey.
“The bad news scenario is where inflation doesn't come down, this is higher interest rates and perhaps a much deeper recession in 2024,” said Antunes.
Half of surveyed households think they will be negatively affected if a recession occurs, with 44 per cent of them indicating they would have trouble paying their bills.
Statistics Canada will release new inflation numbers on Tuesday, Jan. 17.
The Canadian Transportation Agency has hit a record high of more than 71,000 complaints in a backlog. The quasi-judicial regulator and tribunal tasked with settling disputes between customers and the airlines says the backlog is growing because the number of incoming complaints keeps increasing.
B.C.'s premier is scheduled to give an update Friday about public drug use in the province.
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
After the Assembly of First Nations' national chief complained to Air Canada about how staffers treated her and her ceremonial headdress on a flight this week, she says the airline responded by offering a 15 per cent discount on her next flight.
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
An American Airlines flight attendant was indicted Thursday after authorities said he tried to secretly record video of a 14-year-old girl using an airplane bathroom last September.
Philadelphia 76ers All-Star centre Joel Embiid has been diagnosed with Bell’s palsy, a form of facial paralysis he says has affected him since before the play-in tournament.
The current overall public health risk posed by the H5N1 bird flu virus is low, the World Health Organization said on Friday, but urged countries to stay alert for cases of animal-to-human transmission.
An idyllic 453-acre private island is up for sale off the west coast of Scotland and it comes with sandy beaches, puffins galore, seven houses, a pub, a helipad and a flock of black-faced sheep.
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
After the Assembly of First Nations' national chief complained to Air Canada about how staffers treated her and her ceremonial headdress on a flight this week, she says the airline responded by offering a 15 per cent discount on her next flight.
B.C.'s premier is scheduled to give an update Friday about public drug use in the province.
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
An investigation is underway after a Regina police officer was accidentally shot by a fellow officer’s gun during the search of a house early Friday morning.
A CSIS officer's allegations that she was raped repeatedly by a superior in agency vehicles set off a harassment inquiry, but also triggered an investigation into her that concluded the alleged attacks were a “misuse” of agency vehicles by the woman.
An American Airlines flight attendant was indicted Thursday after authorities said he tried to secretly record video of a 14-year-old girl using an airplane bathroom last September.
Columbia's embattled president came under renewed pressure on Friday as a university oversight committee met to address her attempt two weeks ago to clamp down on protests that have roiled the Ivy League school and spread across the country and aboard.
The military horses that bolted and ran loose when spooked by construction noise in central London earlier this week "continue to be cared for and closely observed," the British Army said Friday.
Donald Trump's defence team attacked the credibility Friday of the prosecution's first witness in his hush money case, seeking to discredit testimony detailing a scheme between Trump and a tabloid to bury negative stories to protect the Republican's 2016 presidential campaign.
A Ukrainian court on Friday ordered the detention of the country's farm minister in the latest high-profile corruption investigation, while Kyiv security officials assessed how they can recover lost battlefield momentum in the war against Russia.
The practice of giving sedatives to people detained by police has spread quietly across the U.S. over the last 15 years, built on questionable science and backed by police-aligned experts, an investigation led by The Associated Press has found.
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
The federal government is earmarking $3 million for production of drones in Ukraine in support of Kyiv's fight against Russia's invasion.
After the Assembly of First Nations' national chief complained to Air Canada about how staffers treated her and her ceremonial headdress on a flight this week, she says the airline responded by offering a 15 per cent discount on her next flight.
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
Health Canada issued recalls for various items this week, including kids’ bathrobes, cribs and henna cones.
TikTok is in the crosshairs of authorities in the U.S., where a new law threatens a nationwide ban unless its China-based parent ByteDance divests. Here are the places that have partial or total bans on TikTok.
The Hubble Space Telescope has captured a stunning new image of the glowing gas ejected from a dying star, which in this case happens to resemble a 'cosmic dumbbell.'
After years of delays and a dizzying array of setbacks during test flights, Boeing’s Starliner spacecraft is finally set to make its inaugural crewed launch.
A pair of Montreal designers' work has now been viewed over 41 million times. Taylor Swift dons a Victorian throwback black gown in her latest music video, 'Fortnight', designed by UNTTLD due Simon Belanger and Jose Manuel Saint-Jacques.
Ellen DeGeneres is reflecting on how her talk show came to an end. The comedian began performing her 'Ellen's Last Stand…Up Tour' this week, her first major project since 'The Ellen DeGeneres Show' finished its run in 2022.
Mary J. Blige's "Strength of a Woman Festival and Summit" is partnering with Pepsi to launch a fund with US$100,000 available as grants to local organizations whose work elevates and educates underserved women in Yonkers.
The federal and Quebec governments are spending close to $100 million to boost the country's manufacturing capacity for semiconductors, which are vital in technologies ranging from artificial intelligence to quantum computing.
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Ford’s electric vehicle unit reported that losses soared in the first quarter to US $1.3 billion, or US$132,000 for each of the 10,000 vehicles it sold in the first three months of the year.
An idyllic 453-acre private island is up for sale off the west coast of Scotland and it comes with sandy beaches, puffins galore, seven houses, a pub, a helipad and a flock of black-faced sheep.
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
A Polish pilot proposed to his flight attendant girlfriend during a flight from Warsaw to Krakow, and she said yes.
Maple Leafs winger William Nylander appears on course to suit for the first time in this spring's Stanley Cup playoffs.
Philadelphia 76ers All-Star centre Joel Embiid has been diagnosed with Bell’s palsy, a form of facial paralysis he says has affected him since before the play-in tournament.
Legendary sportscaster Bob Cole was a Newfoundlander through and through, and his daughter says his connection to the province was 'everything' to him.
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Ford’s electric vehicle unit reported that losses soared in the first quarter to US $1.3 billion, or US$132,000 for each of the 10,000 vehicles it sold in the first three months of the year.
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
B.C.'s premier is scheduled to give an update Friday about public drug use in the province.
Homicide detectives investigating a fatal stabbing in White Rock, B.C., say there were several witnesses in the area during the altercation between the 26-year-old victim and the perpetrator who remains at large.
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
An 11-year-old boy struck by a transport truck in Etobicoke on Friday morning suffered critical injuries and is receiving treatment at a Toronto trauma centre, police say.
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Calgary police took two people into custody on Friday after a stabbing in the community of Haysboro.
Calgary police are investigating a shooting reported in the Valleyfield industrial area on Friday.
A Calgary man has been sentenced to 30 months in prison for his role in a downtown stabbing spree last year that sent multiple people to hospital.
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
Ontario Provincial Police are asking for the public's help in locating a missing man from Newfoundland who disappeared in eastern Ontario.
Queen’s University says renowned Canadian broadcaster and alumna, Shelagh Rogers will serve as its 16th chancellor starting July 1.
Officials with Quebec's workplace safety board are being sent to the Port of Montreal on Friday after a worker was killed on the job.
Montreal police are sending a bomb squad to an east-end neighbourhood Friday afternoon after sticks of dynamite were found on a sidewalk outside a residential building.
A pair of Montreal designers' work has now been viewed over 41 million times. Taylor Swift dons a Victorian throwback black gown in her latest music video, 'Fortnight', designed by UNTTLD due Simon Belanger and Jose Manuel Saint-Jacques.
An Edmonton radio host created a petition to stop country music singer Brett Kissel from performing the anthem at Oilers playoff games – and Kissel signed it.
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
An Alberta RCMP officer has been charged with child sexual exploitation offences.
A girl and a boy, both 14 years old, made their first appearance today in a Halifax courtroom, where they each face a second-degree murder charge in the stabbing death of a 16-year-old high school student.
A church in Bridgetown, N.S., has been destroyed by a Friday morning fire.
The first-ever Cyberbullying Awareness Day on Prince Edward Island may have passed but for the father of the boy the day was created to remember, the job isn’t close to done.
Take an illustrated look back at the culinary history of Winnipeg.
After the Assembly of First Nations' national chief complained to Air Canada about how staffers treated her and her ceremonial headdress on a flight this week, she says the airline responded by offering a 15 per cent discount on her next flight.
A blind pug has been safely returned to its home in Manitoba after going missing for 16 days.
An investigation is underway after a Regina police officer was accidentally shot by a fellow officer’s gun during the search of a house early Friday morning.
Fire restrictions are currently in effect for three Saskatchewan provincial parks and multiple rural and urban municipalities (RM) and individual communities around the province.
A public inquest into the death of a Saskatchewan teenager who was found unresponsive in a creek in east Regina in 2015 will take place in May.
A 57-year-old man was transported to an out-of-region hospital with serious injuries after police say he was hit by a driver who did not remain at the scene.
An elderly Guelph driver has been charged after hitting a woman pushing a stroller.
Flames could be seen coming from a vacant leather factory in Kitchener once again late Thursday night.
Four people, including two teen girls, were arrested and charged after an attempted armed robbery on Thursday evening.
For the first time since 1993 two Saskatchewan teams will face each other in the Western Hockey League’s (WHL) Eastern Conference Final as the Moose Jaw Warriors and Saskatoon Blades get their third round series underway Friday night
Fire restrictions are currently in effect for three Saskatchewan provincial parks and multiple rural and urban municipalities (RM) and individual communities around the province.
Two hunters from North Bay, Ont., and a third from Temagami pled guilty recently to offences they committed during a 2022 moose hunt.
A month after an accidental fire forced more than 100 people out of their apartments at the Empire Complex in Timmins, residents are now dealing with being victims of theft.
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
A fatal crash in Thames Centre closed down a portion of Highway 401 westbound. Around 2:15 a.m., first responders were called to westbound lanes of the highway between Culloden and Putnam Roads for a two-vehicle crash.
A new private aviation centre at the London International Airport is expected to raise the city’s profile.
An unknown number of people have been taken to hospital following a crash in Oxford County. OPP are on scene of the two-vehicle crash at 37th Line and Road 74 in Zorra.
A man is in serious condition after being struck by a train near Alliston.
Faking a caller identity has never been so easy.
A small garage fire sent a resident to the hospital in Huntsville.
Windsor police have arrested two people after seizing $120,000 in illegal drugs.
A former high school teacher who just finished one trial is now facing another.
A Windsor man is celebrating winning $100,000.
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
Mounties have found a vehicle believed to have struck and killed a young woman on Vancouver Island in a hit-and-run crash last week.
The supplies are all in place at Pure Medical Clinic in Colwood, but the beds in the examination rooms remain covered in plastic.
An emaciated dachshund is now recovering thanks to a Good Samaritan who found the pup near a biking trail in Kelowna, according to the BC SPCA.
Search and rescue crews have been called in after a vehicle belonging to a missing senior was located near a rural intersection outside of Kelowna Tuesday.
Major crime detectives in British Columbia are investigating a suspected homicide after a body was found in a remote area southeast Kelowna over the weekend.
It was a busy Wednesday evening for fire crews in Lethbridge County after multiple grass fires were sparked near the Kipp rail yard.
A former University of Lethbridge student has been awarded the Medal for Diversity, Equity, Inclusion and Equity by NASA.
The Okotoks Oilers bounced back against the Bandits Wednesday night, defeating Brooks 4-1.
Meeting next week, city council in Sault Ste. Marie will get an overview of what to expect if it decides to implement a new tax on empty homes in the city.
Some members of the Garden River First Nation are demanding answers regarding the disbursement of the Robinson-Huron Treaty settlement funds.
The Ontario Provincial Police, in partnership with the Treaty Three Police Service, have charged a suspect with murder following a homicide in a remote northwestern Ontario community.
Legendary sportscaster Bob Cole was a Newfoundlander through and through, and his daughter says his connection to the province was 'everything' to him.
Cenovus Energy has been ordered to pay a $2.5-million fine for its role in the largest offshore oil spill ever recorded in Newfoundland and Labrador.
As more Canadians find themselves struggling to afford or find housing, the country's smallest province is the only one that can point to legislation recognizing housing as a human right.
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