Firms anticipate stronger demand as pandemic conditions improve, according to results from the Business Outlook Survey in the third quarter of 2021. However, many businesses face supply constraints that will limit their sales and put upward pressure on their costs. Together, these demand pressures and supply challenges are driving widespread plans to invest, hire staff and increase prices. The outlook for domestic and foreign sales remains strong. This is especially true for firms providing hard-to-distance services. These businesses expect to benefit from an easing of some COVID‑19 restrictions and the release of pent-up demand. In contrast, firms in other sectors that have been leading the recovery continue to anticipate an increase in sales but at a slower pace. In this context, more firms are facing supply-side challenges. Labour shortages are frequent and have intensified from la tweet at 10:33am: BoC Q3 Business Outlook Survey - indicator hits highest level on record - Supply chain disruptions are more prevalent and have worsened since last quarter. Many businesses anticipate they will persist until the second half of 2022 - Firms’ inflation expectations moved up further tweet at 10:30am: BOC BOS SURVEY: SUPPLY CHAIN DISRUPTIONS ARE MORE PREVALENT AND HAVE WORSENED SINCE Q2; MANY BUSINESSES ANTICIPATE THEY WILL PERSIST UNTIL H2 2022 #News #Forex #BOC tweet at 10:30am: BOC BOS SURVEY: 45% OF FIRMS EXPECT TOTAL CPI TO BE ABOVE 3% OVER NEXT TWO YEARS; HALF OF THOSE FIRMS SAY DRIVERS OF HIGHER INFLATION ARE TEMPORARY #News #Forex #BOC #INFLATION #CPI