5 Strategies for Building Business Resilience in Changing Times

The Bank of Canada’s Q2 2025 Business Outlook Survey shows cautious optimism among Canadian businesses amid ongoing economic uncertainty. While firms’ near-term sales expectations remain weak due to broad soft demand, fewer companies now anticipate higher tariff-related costs—down from two-thirds last quarter to about one-third. Business sentiment has improved slightly with about 28% of firms expecting a recession, a decrease from previous quarters.

Employment levels are stable with limited hiring planned, and investment intentions focus mainly on maintenance rather than expansion. Firms face challenges passing on cost increases due to weak demand, causing margin pressure. Near-term inflation expectations among businesses have eased to below 3%, but consumer inflation expectations remain above 4%.

Businesses are responding by strengthening resilience through diversification, cautious cash flow management, reducing discretionary expenses, optimizing operations, and leveraging financial tools like lines of credit and cash flow forecasting. The outlook favors adaptability, strategic planning, and operational efficiency to navigate trade uncertainties and shifting market demand.

Read More- https://canadiansme.ca/5-strategies-for-building-business-resilience-in-changing-times/

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