A recent Bank of Canada business outlook survey indicates that business confidence has weakened and inflation expectations have risen slightly. While confidence improved over the past three quarters, it fell again in the second quarter, with the business outlook index dropping from 0.35 to 0.39. Expectations for future sales fell sharply, and the outlook for sales in the second quarter was weaker, though export prospects improved. Companies anticipating higher input and selling prices increased in share. Consumer inflation expectations rose modestly, mainly due to higher energy prices, and concerns about prices and the economy continue to pressure consumer spending. Consumer sentiment about the labour market improved slightly compared to the first quarter. Oil producers responded to higher oil prices by boosting investment and production. The Bank of Canada added two new indicators to its business outlook survey to gauge economic activity and price movements.