The Financial Post reports in its Saturday, Oct. 12, edition that the Bank of Canada reports that both businesses and consumers had low confidence during the third quarter of this year. The Post's Jordan Gowling writes that the main reasons cited were high interest rates and increased costs. The Business Outlook Survey states that high interest rates have continued to impact sales, especially for businesses connected to discretionary consumer spending. Companies also expressed concerns about domestic and global uncertainty, as well as taxes and regulations, which are affecting business conditions. However, the percentage of firms expecting improved sales in the next year has slightly increased compared with a year ago. Consumers are feeling less pessimistic about their financial situation compared with the previous quarter, and 44 per cent have observed a decrease in interest rates. Despite these improvements in sentiment, consumers still anticipate spending more on essential purchases in the coming year and less on discretionary items. Around half of consumers (49 per cent) are still expecting a recession in the coming year, a sentiment that is largely unchanged from the previous quarter (51 per cent).