Half of Canadian businesses see inflation as obstacle in next 3 months: Report

By Ovunc Kutlu

ISTANBUL (AA) - Half of all businesses in Canada, or 50.2%, expect rising inflation to be an obstacle over the next three months, according to a report released Tuesday by the country's statistical authority.

Inflation remains as the top obstacle expected by businesses in each quarter since the first quarter of 2021, it noted.

Businesses that see inflation as an obstacle operate in accommodation and food services with 66.9%, and retail trade at 66.6%, followed by agriculture, forestry, fishing and hunting 57.6%, according to the agency.

"The second most commonly expected obstacle is the rising cost of inputs, reported by 41.8% of businesses," said the report.

Over one-third, or 34.1%, of businesses expect high interest rates and debt costs to be an obstacle, it added.

Despite those obstacles, over three-quarters, or 76.7%, of businesses are either very optimistic or somewhat optimistic about their future outlook over the next 12 months, said Statistics Canada.

That percentage is an increase from the second quarter when it stood at 72.1%.

Slightly over one-third, or 34.7%, of businesses expect revenue growth of 1% to 5% per year over the next three years, said the report.