Canada's CFIB Business Barometer long-term index, which measures 12-month business expectations, climbed to 58.3 in July 2026 from 50.1 in June, reaching its highest level since tensions in the Middle East began. The short-term optimism index, based on the three-month outlook, also rose sharply to 57.0 from 47.2. Confidence improved across sectors, with most remaining in positive territory, although persistent uncertainty continued to weigh on near-term sentiment. Meanwhile, firms' average planned price increases eased to 2.7% from 3.0%, while expected wage growth held steady at 2.3%. Hiring intentions improved modestly, as the share of businesses planning to add full-time staff increased to 15% from 13%, exceeding those expecting to reduce headcount (11% vs. 12% previously). Weak demand remained the most frequently cited constraint, affecting half of all businesses, while higher fuel, taxes, insurance, and wage costs continued to pressure on operating expenses.