Canada’s CFIB Business Barometer long-term index, measuring 12-month business expectations, fell to 57.6 in August 2026 from 58.6 in June. Short-term optimism, based on the three-month outlook, also declined sharply to 52.4 from 57.6, with confidence deteriorating in manufacturing, construction, transportation and utilities, and information, arts and recreation. By contrast, long-term sentiment improved across most sectors, with agriculture the only exception (39.1 vs 39.2). Meanwhile, firms’ average planned price increases remained stable at 2.7%, while expected wage growth edged up to 2.5%. Hiring intentions were broadly unchanged, although more firms planned to lay off (15%) than hire (13%). Weak demand remained the most frequently cited constraint, affecting nearly half of businesses, while higher fuel, tax, insurance and wage costs continued to pressure operating expenses.