CFIB's long-term Business Barometer index, which tracks businesses' 12-month performance expectations, fell 0.9 points to 57.6 in August versus the previous month, according to the Canadian Federation of Independent Business in its monthly survey.
Average planned price increases edged down 0.2 percentage point to 2.7% in August, while average wage growth rose slightly to 2.5%, CFIB said on Thursday.
Full-time hiring intentions remained subdued among small Canadian firms, with 15% of employers planning layoffs, compared with just 13% expecting to add staff, according to CFIB.
Insufficient demand remained the main constraint on business and production expansion, cited by 48% of small- and medium-sized enterprises, although the measure eased for a third consecutive month, it added.
Fuel costs ranked third and have also declined steadily since peaking in April 2026. Product input and raw material costs remained significant concerns, with 42% of SMEs citing each as a major constraint -- around 13 percentage points above their historical averages, said CFIB.