The Canadian business outlook worsened in the third quarter as interest rates began to slow the economy, according to Statistics Canada.
The federal agency said labour shortages, slumping prices for energy products, and the depreciation of the Canadian dollar have heightened concerns among businesses about an economic slowdown in the coming year.
News of the darkening business outlook came as Statistics Canada released its quarterly report on financials statistics for enterprises.
That report showed that Canadian corporations saw seasonally adjusted net income before taxes decrease by 8.1% in the third quarter compared to the previous quarter.
Net income before taxes for oil and gas extraction was down 3.4% as prices were lower during Q3.
The construction industry was less profitable in the third quarter as well, seeing its net income decline 11.1% due to higher costs, especially wages and materials, according to StatCan.
However, companies selling food and beverages saw their average pre-tax profit margin go from an average of 2.2% to 3.5%.