Canada Small Business Sentiment Improves in October
2026-10-22 12:16
By
Larissa Caser
1 min. read
Canada’s CFIB Business Barometer long-term index, measuring 12-month business expectations, rose to 50 in October 2026 from 48.5 in September, reaching neutral territory.
Sentiment improved in agriculture and finance but weakened in construction, manufacturing, retail and transportation.
Short-term optimism, based on the three-month outlook, also edged up to 45.3 from 44.1, supported by stronger sentiment in arts and recreation, professional services, and health and education.
Meanwhile, firms’ average planned price increases eased to 2.8%, while expected wage growth slipped to 2.2%.
Hiring intentions deteriorated further, reaching their weakest level since the pandemic, with sharply more firms planning to lay off (22% vs 16% in September) than hire (11% vs 13%).
Weak demand remained the most frequently cited constraint, affecting nearly half of businesses, followed by shortage of skilled labour, while higher fuel, tax, insurance and wage costs continued to pressure operating expenses.