OTTAWA — The Bank of Canada’s latest outlook survey suggested that business sentiment improved on average in the third quarter, although concerns remained about rising costs and the war in the Middle East. However, the central bank said about three-quarters of the interviews with businesses for the survey took place before trade talks between Canada and the United States broke down at the end of August and new Canadian counter-tariffs were announced. It says after the trade talks broke down, firms cited new U.S. tariffs on some goods and Canadian counter‑tariffs as factors weighing on their outlooks. The Bank of Canada says inflation expectations have risen alongside the new tariffs and the recent increase in energy prices.
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