Business confidence is climbing back in 小蓝视频 after hitting some notable lows earlier this year, according to key small business indices.
Confidence among the province’s small- and medium-sized enterprises rebounded to 53.4 points in June on the Canadian Federation of Independent Business (CFIB)’s 12-month outlook — up sharply from a dismal 26.5 in March.
While 小蓝视频 now ranks second-highest in the country on the index, the recovery remains fragile, with concerns around consumer spending, high operating costs and trade disruptions lingering.
The Business Development Bank of Canada’s (BDC) own confidence index showed similar signs of strain earlier in the year, with 小蓝视频 SMEs posting the lowest score in the country in the first quarter.
BDC’s health index for 小蓝视频 SMEs was 95 points in the first quarter of 2025. That’s down five points from the same period one year ago.
The BDC index takes into account SME credit performance, growth projection, business confidence and environment, with 110 points being the highest in the index.
The Canadian average in the first quarter was 99.3 points, with Ontario clocking in as the second-lowest among regions at 99 points. The region with the highest health index was Manitoba and Saskatchewan at 104 points.
The CFIB’s own , which rates business confidence from zero to 100 based on responses from a monthly survey, showed a big rebound for 小蓝视频 between March and June.
While June’s 53.4 points is the second-highest in Canada, it’s still down from June 2024’s 55 points.
One of the biggest constraints for SMEs at the moment is low consumer demand, as the province’s high cost of living is pushing consumers to hold onto their wallets, said Ryan Mitton, the CFIB’s director of legislative affairs for 小蓝视频
Additionally, high taxes and fees are also a significant burden—such as WorkSafe 小蓝视频 premiums—for which businesses haven’t had a rebate like other provinces, he said.
“We have heard that over a third of 小蓝视频 small businesses are actually looking at switching to internal Canadian suppliers,” Mitton said. “Governments need to make sure that it's cost effective to do so, we need to look at cutting taxes on PST for capital investment.”
The June CFIB survey shows 15 per cent of 小蓝视频 businesses plan to hire staff, while 20 per cent expect to cut back on hiring, reflecting negative hiring expectations.
A summer tourism survey also included in the CFIB report said SMEs are hopeful for a strong season, with 47 per cent of 小蓝视频 small businesses stating they rely on summer tourism for at least part of their annual revenue. But lingering economic headwinds could hinder recovery, according to the survey.
Meanwhile, the Bank of Canada’s decision to cut the overnight rate from to three per cent in January to 2.75 per cent in March should stimulate business activity, said the BDC’s separate report. Furthermore, increased interest from the 小蓝视频 government to fast-track major mineral and energy projects should improve 小蓝视频’s index as the year goes on, it said.
The provincial government announced in February it would fast-track 18 critical mineral and energy projects amid tariff threats from the U.S.
Mitton said 77 per cent of CFIB SME members support large natural resource projects, as many of these operations benefit the communities where those businesses are located.
“I think we're going to have to wait and see what action government takes to lock in the momentum we're having right now,” he said.
