Third quarter business outlook worsens as interest rates rise: StatCan – National

Statistics Canada said the outlook for the business economy deteriorated in the third quarter as interest rates began to have a cooling effect on the economy.

In its quarterly report on company financial data released Wednesday, officials said continued labor shortages, a downward trend in energy and metals prices, and the depreciation of the Canadian dollar against the U.S. dollar have all contributed to the uncertainty over an economic slowdown. He said it contributed to growing concerns.

Canadian corporate seasonally adjusted pre-tax net income declined 8.1% in the third quarter quarter-on-quarter but increased year-on-year.

Oil and gas mining net profit before tax fell 3.4% as gas prices fell during the quarter.

Statistics Canada said the construction industry was less profitable in the third quarter, particularly higher labor and material costs, leading to an 11.1% decline in pre-tax net income.

Financial institutions’ net profit before tax also fell by 11.6%.