Your browser is not supported

Your browser is too old. To use this website, please use Chrome or Firefox.

Greater Niagara Chamber of Commerce

Daily Update: August 30, 2022

Rising inflation top business obstacle for next quarter, Government of Canada invests $2 billion in homebuilding, and more.

In this edition:


Rising inflation top business obstacle for next quarter

Statistics Canada conducted its regular Canadian Survey on Business Conditions from July to early August 2022. The survey collects information on the environment that businesses are currently operating in and on their expectations for the future.

Almost one-third of businesses that are facing challenges maintaining inventory levels or acquiring inputs, products and supplies, either domestically or abroad, expect these challenges to worsen in the short term. Over the next three months, half of businesses expect their profitability to remain relatively unchanged, one-third expect to increase the prices they charge, and four-fifths expect their number of employees to remain the same.

Rising inflation was the top obstacle business expected over the next three months, with three in five businesses (60.0%) expecting it to be an obstacle, led by businesses in accommodation and food services (78.2%), construction (72.0%) and manufacturing (67.8%).

The rising cost of inputs, including labour, capital, energy, and raw materials, was the second most expected obstacle, with 47.1% of businesses expecting it to be an obstacle, down slightly from nearly half (49.7%) of businesses in the second quarter.

Click here to read more.


Government of Canada invests $2 billion in homebuilding

The Prime Minister, Justin Trudeau, today announced a major investment of over $2 billion to support three key initiatives that, together, will help create nearly 17,000 homes for families across the country, including thousands of affordable housing units.

This investment, which includes funding from Budget 2021 and Budget 2022, will go toward:

  • Creating 4,500 additional affordable housing units by extending the Rapid Housing Initiative for a third round
  • Creating at least 10,800 housing units, including 6,000 affordable units, through the Affordable Housing Innovation Fund
  • Creating a new, five-year rent-to-own stream under the Affordable Housing Innovation Fund

Applications are being accepted as of today for both the Affordable Housing Innovation Fund and its new rent-to-own stream. As part of their application, candidates will be required to demonstrate their commitment to innovation, affordability, and financial sustainability.

More information on the extended Rapid Housing Initiative will be available soon, followed by the opening of the application and proposal process.

Click here to read more.


PM to make small federal cabinet shuffle on Wednesday: sources

Prime Minister Justin Trudeau will make a small cabinet shuffle tomorrow at Rideau Hall, CTV News is reporting.

Sources say the changes to the Liberals’ front bench are not expected to see major ministers on the move, rather the adjustments will focus on more minor portfolios.

The move comes just prior to the federal cabinet retreat next week in Vancouver, B.C., where Trudeau and his ministers will gather to discuss priorities and plot out their agenda for the fall.

Click here to read more.


Focus on Finance and Economy

Canadian banks brace for uncertainties after mixed quarter

Reuters

Bank of Montreal (BMO) closed out a mixed quarter for Canada’s biggest banks on Tuesday, with investors and analysts expecting some earnings drivers to ebb and economic uncertainties to increase in future quarters.

BMO missed analysts’ estimates for third-quarter profit and reported a decline in earnings from a year earlier as revenue from its capital markets business slumped and it increased provisions for credit losses.

Three of Canada’s Big Six banks have missed expectations driven in part by challenges in their capital markets operations. The other three beat expectations as loan growth remained strong and margins expanded.

Click here to read more.


Bank of Canada could put rate hikes on pause after September, CIBC says

Financial Post

Could the upcoming Bank of Canada interest rate decision in September be the last bump up in the central bank’s current rate hiking cycle? At least one analyst at the Canadian Imperial Bank of Commerce seems to think so.

CIBC’s managing director and head of fixed income, Ian Pollick, said in an Aug. 22 note his team suspects a “narrative shift is coming” and forecasts the bank will put a pause on its rate hiking cycle after hiking 75 basis points on Sept. 7. This would bring the policy rate up to 3.25 per cent, matching the bank’s previous guidance that the benchmark rate could move above neutral at between two to three per cent — a reading that would neither help nor hinder economic growth.

Click here to read more.


Through the Daily Updates, the GNCC aims to deliver important business news in a timely manner. We disseminate all news and information we feel will be important to businesses. Inclusion in the Daily Update is not an endorsement by the GNCC.


Share this: