HALIFAX: The long-term small business confidence index lost 9.5 points, dropping to 55.8 points in March, finds the March Business Barometer® by the Canadian Federation of Independent Business (CFIB).
“Just when we saw a glimmer of hope, fuel prices and supply chains are causing hardships again. The 12-month index improved gradually over much of the past year, though with some fluctuations, but this month, it has dropped sharply to levels recorded last fall,” said Andreea Bourgeois, CFIB director of economics.
Several cost concerns increased this month, with the share of businesses worried about fuel costs jumping from 36% in February to 50% in March.
Input product and raw material costs were top of mind for 44% of small firms, compared to 32% in February.
Average wage increase plans were steady at 2.2%, while price plans saw a big jump to 2.7% from 2.2% in the previous month.
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Over half (57%) of small businesses also reported challenges with insufficient demand, up from 50% in February. This indicator has been above its historical average (38%) for two and half years, and is at its highest ever this month, save for March 2025 (59%).
“Weak domestic and international demand has been a major pain point for small business owners for the past two years, and we’re already hearing concerns that high prices at the pump will put even more pressure on both businesses and consumers,” said Simon Gaudreault, CFIB chief economist and vice-president of research.
“There’s still a lot of uncertainty, and so far, governments are failing when it comes to small business policies.
“While we may not be able to control much in the short term, it’s crucial that Canada move quickly on projects that increase our domestic energy supply and capacity so that we can better weather future instability.”