Toronto, June 18, 2026 – Small business confidence saw virtually no change this month, with the index remaining below the 50-point mark for a second month in a row, finds the latest Canadian Federation of Independent Business (CFIB) Business Barometer®.
“Although early signs from abroad suggest the worst of the fuel shock may be behind us, many consumers and businesses remain under strain, and the outlook is still uncertain. We see this month marks a low point for confidence heading into the summer but we hope it will rebound in the upcoming months, though important challenges remain,” said Simon Gaudreault, CFIB chief economist and vice-president of research.
Price plans have held near the 3% mark for three consecutive months, at the upper end of the Bank of Canada’s inflation target range.
Fuel costs remain the top cost constraint for 66% of small businesses, while weak demand continues to weigh on more than half (53%) of small firms. Meanwhile, the share of businesses reporting challenges with capital equipment and technology costs has steadily climbed over the past two and half years, reaching 38% of small firms.
“Businesses are being squeezed from all sides, including by rising input and occupancy costs, with the shares of affected firms on track to nearly double historical norms. At the same time, their capacity to absorb higher costs is limited, and recent years have taken a toll on overall business health, reflected in a net share of just 18% of firms now reporting they are in a good general situation,” said Laure-Anna Bomal, CFIB senior economist.
Despite summer being the busiest season for tourism and other sectors, hiring plans remained muted, with 12% of small firms planning to hire full-time staff and 11% planning to hire part-time employees over the next three months.
“The economy is resilient, but cracks are starting to show. The longer conditions remain weak, the greater the risk for many businesses,” said Gaudreault. “One of the most impactful things Canadians can do this summer is shop local and promote local businesses, and CFIB’s upcoming Big Thank You Contest is a great way to get involved.”
For media enquiries or interviews, please contact:
Dariya Baiguzhiyeva, CFIB
647-464-2814
public.affairs@cfib.ca
Methodology
June Business Barometer®: June findings are based on 347 responses from a stratified random sample of CFIB members, to a controlled-access web survey. Data reflects responses received from June 2-8. Findings are statistically accurate to +/- 5.3 per cent, 19 times in 20. Every new month, the entire series of indicators is recalculated for the previous month to include all survey responses received in that previous month. 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.
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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