Businesses and consumers are bracing for a recession this year. Photo by Getty Images

The number of firms that are preparing for a recession increased during the third quarter, according to a survey released by the Bank of Canada on Monday.

This will make them hesitant to invest in hiring or growth, the survey results indicated.

The central bank’s business outlook survey , based on interviews conducted with 100 firms between Aug. 7 and Sept. 3, shows business sentiment remains subdued, despite an improvement from worst-case expectations at the beginning of the year.

Companies expect sales to remain weak as U.S. tariffs continue to hold back demand and the percentage of firms preparing for an economic downturn has jumped from 28 to 33 per cent.

“Uncertainty surrounding financ

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