Stats show borrowing costs reducing investment

The effect of high interest-rates is measurable, with Statistics Canada’s latest Survey on Business Conditions showing many businesses are challenged by increasing costs and reduced customer spending.

The Canadian Chamber’s Business Data Lab explores the stories behind the numbers, including an analysis by Chief Economist Stephen Tapp.

“Continuing cost pressures explain why firms’ pricing behaviour still hasn’t normalized yet, even though headline inflation has slowed,” Tapp said. “Thankfully, the labour market is loosening up, although there are still significant challenges in sectors such as health care, accommodation and food services, manufacturing and construction. Supply chains are also recovering from their peak difficulties of last year, but they too remain problematic for affected companies.”