Canadian Small Business Confidence Weakens in August

Canada’s CFIB Business Barometer long-term index fell 3.7 points to 47.8 in August, ending a four-month climb toward the neutral 50 mark.

Confidence weakened in most sectors, with notable declines in personal services (43.8), transportation (43.6), and financial services (36.2), while wholesale (53.3), construction (51.3), professional services (52.2), and agriculture (50) posted gains.

Regionally, confidence dropped in most provinces but rose in New Brunswick (58.1), Manitoba (50), and Newfoundland and Labrador (46.7).

Only four provinces remain above 50, where equal shares of entrepreneurs expect stronger and weaker performance.

Hiring plans stayed muted, with weak demand cited by 49% of SMEs as the main obstacle.

High insurance, tax and regulatory costs (63% each), along with wages (58%), also weighed on sentiment.

Inflation pressures were stable, with prices up 2.7% and wages up 2.1%.