FX.co ★ Canada Small Business Confidence Weakens in August

Canada’s CFIB Business Barometer long-term index, which tracks 12‑month business expectations, slipped to 57.6 in August 2026 from 58.6 in June. Short‑term optimism, based on the three‑month outlook, weakened more sharply, falling to 52.4 from 57.6, with confidence deteriorating in manufacturing, construction, transportation and utilities, and information, arts and recreation. In contrast, long‑term sentiment improved in most sectors, with agriculture the sole exception (39.1 vs 39.2). Firms’ average planned price increases were unchanged at 2.7%, while expected wage growth inched up to 2.5%. Hiring intentions were largely steady, although more firms anticipated cutting staff (15%) than adding workers (13%). Weak demand remained the most commonly cited constraint, affecting nearly half of all businesses, while rising fuel, tax, insurance and wage costs continued to put pressure on operating expenses.