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CFIB Survey Shows Small Business Confidence up, But Manufacturing Sector Still Struggles

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Small business confidence rose to 58.3 points in July, about 8 points above June, but confidence among manufacturers continued to lag at 53.7 index points, the Canadian Federation of Independent Business (CFIB) reported in its latest Monthly Business Barometer.

The survey was conducted from July 7 to 13, and gathered 520 responses from CFIB members, before the latest round of U.S. tariffs were announced.

The manufacturing sector's confidence, which hasn't recovered since 2023, has been hit harder by tariffs than by either the 2008-09 recession or the pandemic, the CFIB reported. The sector is contending with higher shipping and receiving costs. Input product costs were also impacting 77% of manufacturers, almost double the usual share for this sector.

"As some manufacturers are considering US production, we need a more competitive fiscal environment here at home and policies that would encourage businesses to stay and invest in Canada," CFIB director of economics Andreea Bourgeois wrote.

The survey also found that 60% of small businesses cited fuel prices as the top cost constraint.

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