Confidence among Canada’s small businesses declined in September, according to a new report from the Canadian Federation of Independent Business (CFIB), as renewed tariff uncertainty and rising energy prices weighed on outlooks.
The CFIB’s monthly business barometer showed its long-term optimism index fell 10 points to 47.9, continuing a downward trend that has been underway since July. The short-term optimism index also dropped 10 points, landing at 43.3. On the CFIB’s scale of zero to 100, a reading below 50 means more surveyed businesses expect their performance to weaken than improve in the period ahead.
Tariffs and Energy Costs Cited as Drags
Andreea Bourgeois, the CFIB’s director of economics, said tariff uncertainty combined with rising oil and gas prices are keeping small business confidence subdued. The organization’s report points to trade tensions between Canada and the United States as a key factor unsettling business owners.
Those tensions escalated in August, when U.S. President Donald Trump imposed tariffs on nearly $28 billion worth of Canadian goods. Ottawa responded with its own retaliatory tariffs on American products. Trump has also ordered bans on imports of Canadian-made liquor and a handful of dairy products, measures set to take effect Sept. 29.
A Trend Building Since Summer
The latest figures extend a slide in sentiment that the CFIB says has been building since July, suggesting that trade friction and energy cost pressures have not eased in the weeks since. The decline in both the long-term and short-term optimism indexes points to businesses bracing for weaker performance in the months ahead rather than anticipating a rebound.
This article is for informational purposes only and does not constitute financial, investment, or legal advice. Consult a licensed financial advisor before making investment decisions.
This article references reporting from:
