Small Business Confidence Stepped Back in September

Fuel costs and tariff pressures dragged small business confidence down nearly 10 points in September to 47.9.

The Canadian Federation of Independent Business’ (CFIB) long-term optimism index has been trending downward since July, when it reached 58.3 points — the highest level since the U.S. took military action against Iran.

Firms trading internationally showed lower levels of optimism than businesses operating only in the Canadian market.

“Renewed tariff uncertainty, along with rising gas and oil prices, are keeping small business confidence in check,” says Andreea Bourgeois, CFIB director of economics. “That’s a tough environment to plan in whether you’re hiring, investing or just trying to keep prices steady for customers.”

Nearly all provinces and sectors posted a drop in business confidence. The main cost pressures facing small firms in September were fuel costs, which caused difficulties for 62 per cent of small firms, followed by tax and regulatory costs at 61 per cent, and wage costs at 60 per cent.

Weak demand remained the leading growth constraint for 49 per cent of small businesses, while shortage of skilled labour persisted for 41 per cent of small firms.