January’s performance comes after three positive months of the index.
While the food service and housing sectors saw significant declines, wholesale trade and manufacturing are also expected to slow down in January after a positive last quarter.
Sentiment was quite weak even among small businesses, but a bounceback is likely in the form of an easing of restrictions.
Retailers were less affected by conditions last month and Statistics Canada flash data showed sales were up about 2.4% after a slow December.
The housing market also flourished with gains for housing startups, and BMO economists are also predicting further gains for business credit, which rose 1.8% in December and could rise 0.6% for January.