The Globe and Mail reports in its Tuesday, July 7, edition that the Bank of Canada's new quarterly business and consumer surveys show a sharp drop in confidence, raising questions about the strength of the post-COVID-19 recovery. The Globe's David Parkinson writes that the two surveys suggest a "substantial widening in economic slack." The BOC said: "Overall, consumers are cautious because of the risk of contracting the virus as well as the economic impact of the pandemic and related containment measures. Consumers have changed their behaviour; they reported shopping less often, cancelling or postponing major purchases and lowering their spending compared with before the pandemic." The Globe says this consumer caution is translating into sharply lower sales expectations and investment plans among businesses. The BOC's business outlook survey indicator dropped to its lowest reading since the 2008-2009 financial crisis and Great Recession. The survey results will be cause for concern for the BOC as it prepares to release its new economic forecasts and monetary policy outlook next week. The survey period covered reflects sentiment that may well have brightened as more of the economy has come back on stream.