21.08.202511:43:39UTC+00Canadian Small Business Confidence Weakens in August

In August, Canada's CFIB Business Barometer long-term index experienced a decline of 3.7 points, settling at 47.8, thereby halting a four-month upward trend moving towards the neutral benchmark of 50. Most sectors witnessed weakened confidence, with personal services at 43.8, transportation at 43.6, and financial services notably lower at 36.2. In contrast, sectors such as wholesale recorded 53.3, construction at 51.3, professional services at 52.2, and agriculture meeting the neutral point of 50 showed improvement. On a regional scale, confidence diminished in several provinces, however, New Brunswick rose to 58.1, Manitoba to 50, and Newfoundland and Labrador to 46.7. Presently, only four provinces maintain scores above 50, indicating an equilibrium of entrepreneurs anticipating stronger versus weaker performance. Hiring ambitions remained restrained, with 49% of small and medium-sized enterprises (SMEs) identifying weak demand as the primary challenge. Additionally, the sentiment was negatively impacted by high costs associated with insurance, taxes, and regulations (all cited by 63% of respondents) along with wages (58%). Inflationary pressures appeared consistent, with a 2.7% increase in prices and a 2.1% rise in wages.