The Bank of Canada’s second-quarter Business Outlook Survey found overall business sentiment deteriorated after three quarters of improvement, with sales outlooks softening amid rising fuel costs and Middle East uncertainty. Export outlooks improved, with fewer firms citing US trade hesitancy as a constraint. Investment intentions remained strong, particularly in the oil sector, while employment intentions stayed below historical averages. The share of firms expecting higher input and selling prices rose markedly, tied to elevated global oil prices, though inflation expectations eased after a mid-June US-Iran interim agreement.