Long-term small business confidence gained 9.3 index points in April, reaching 34.8, up from the record low level of 25.0 points recorded in March, finds the latest Canadian Federation of Independent Business (CFIB)’s Monthly Business Barometer® survey.
Measured on a scale between 0 and 100, an index below 50 means owners expecting their business’s performance to be weaker over the next three or 12 months outnumber those expecting stronger performance.
Andreea Bourgeois
“The long-term outlook has slightly recovered, but it’s still at abysmal levels. In fact, it’s only reached the March 2020 level of optimism. So, while the business sentiment trended in the right direction this month, partly due to the elimination of the federal carbon tax, small businesses are still feeling worried and uncertain about the future,” said Andreea Bourgeois, CFIB’s director of economics. “We’ve only gone from an extremely pessimistic outlook to just pessimistic.
“The cost of doing business is still expensive. The uncertainty caused by the current political environment and the trade war is slowing down consumer spending, leading to fewer sales and lower revenue for many business owners.”
The CFIB is Canada’s largest association of small and medium-sized businesses with 100,000 members across every industry and region.
The CFIB said business owners are forecasting price increases of an average of 3.5% and plan to raise wages by an average of 2.2% over the next few months.
“Weak demand continues to plague over half (55%) of small firms. While hiring intentions slightly improved in April, they are still below their historical averages for this time of year, with 14% of firms looking to hire and 17% planning to lay off in the next few months,” said the organization.
“All provinces maintained their very low optimism levels. Businesses in retail, hospitality, and construction saw a slight recovery in confidence, while those in agriculture and wholesale registered another decline in optimism.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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