FX.co ★ Canada Small Business Sentiment Improves in October

Canada’s CFIB Business Barometer long-term index, which tracks 12‑month business expectations, rose to 50 in October 2026 from 48.5 in September, returning to neutral territory. Confidence strengthened in the agriculture and finance sectors but weakened in construction, manufacturing, retail, and transportation. Short‑term sentiment, based on the three‑month outlook, also improved slightly, climbing to 45.3 from 44.1, buoyed by more optimism in arts and recreation, professional services, and health and education.

At the same time, firms scaled back their pricing and wage plans: average intended price increases eased to 2.8%, while expected wage growth slowed to 2.2%. Hiring intentions deteriorated further to their weakest point since the pandemic, with a significantly larger share of businesses planning to cut staff (22%, up from 16% in September) than to add workers (11%, down from 13%). Weak demand remained the most commonly cited constraint, affecting nearly half of all firms, followed by shortages of skilled labour. Rising fuel, tax, insurance, and wage costs continued to exert pressure on operating expenses.