Canada Small Business Sentiment

Canada’s CFIB Business Barometer long-term index, which tracks 12-month forward expectations for business performance, rose for a second consecutive month to 59.9 in December 2025 from an upwardly revised 55.8 in November. It is the highest reading since May 2022, led by gains in the health and education, retail and the insurance sectors. On the other hand, the biggest drops in optimism were registered in hospitality and construction, as they are somewhat seasonal industries. Meanwhile, the short-term optimism index, reflecting a 3-month outlook, rose by 2.0 point to 48.6, indicating only a modest improvement. Despite the rise in sentiment, more than half of small businesses still report insufficient demand.