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Toronto, May 21, 2026 <\/span>\u2013 Small business confidence dropped 11.7 points in May, falling to 46.3, finds the Monthly Business Barometer by the Canadian Federation of Independent Business (CFIB).<\/p>\n The long-term optimism index dropped significantly this month falling below the 50-point threshold. Every province and every sector posted a decline. Fuel costs remained the top pressure point, cited by nearly three quarters (72%) of small businesses. Weak consumer demand is still the lead cost constraint (53%).<\/p>\n \u201cMany small firms are stuck in a grind. Demand is weak, costs – especially fuel – are high, and conditions don\u2019t show signs of improving. This environment is not conducive to strong orders or investment,\u201d said Andreea Bourgeois, CFIB director of economics.\u00a0<\/p>\n Average wage plans were unchanged at 2.4%, while businesses plan to raise prices by an average of 3.1% in the next few months.<\/p>\n \u201cThis is not the direction we\u2019d like to see this data point go. Higher oil prices add upward pressure on inflation, while tariffs and other economic challenges are still weighing on economic growth. With the next Bank of Canada interest rate decision only weeks away, it is a tough spot to be in. This is the second month we\u2019ve seen price increase plans above 3%, and now we have to ask: is this the beginning of a new upward trend?\u201d Bourgeois added.<\/p>\n Hiring intentions remain weak and below seasonal levels, with 14% of small firms looking to hire full-time in the next few months.<\/p>\n \u201cWhile our governments don\u2019t have control over global events, they can control what\u2019s happening here at home. It\u2019s important governments leverage domestic policies to boost our economy. Lowering taxes, reducing red tape and eliminating internal trade barriers are some of the ways to help small businesses weather the current challenges,\u201d said Simon Gaudreault, CFIB chief economist and vice-president of research. \u201cIt\u2019s in the moments like these that we can transform the nation by creating conditions that will outlast the current crisis and pay off in the long term.\u201d<\/p>\n For media enquiries or interviews, please contact:<\/span>
Dariya Baiguzhiyeva, CFIB
647-464-2814
Public.affairs@cfib.ca<\/p>\n