FX.co ★ Canada Small Business Confidence Hits Five-Month High

Canada’s CFIB Business Barometer long-term index, which tracks 12‑month business expectations, rose to 58.3 in July 2026 from 50.1 in June, marking its highest reading since the onset of tensions in the Middle East. The short‑term optimism index, reflecting the three‑month outlook, also posted a strong gain, climbing to 57.0 from 47.2.

Confidence strengthened across most sectors, with the majority remaining in positive territory, though lingering uncertainty continued to dampen near‑term sentiment. At the same time, firms’ average planned price increases eased to 2.7% from 3.0%, while expected wage growth was unchanged at 2.3%.

Hiring plans improved slightly: the share of businesses intending to add full‑time staff rose to 15% from 13%, outpacing those expecting to cut headcount (11%, down from 12%). Weak demand remained the most commonly cited constraint, affecting half of all businesses, while higher fuel, tax, insurance, and wage costs continued to put upward pressure on operating expenses.