Business Confidence Edges Above Neutral—but Recovery Remains Uneven
- ClearView Insider
- Aug 1
- 1 min read
Canadian small business optimism showed tentative signs of recovery in July. The 12-month Business Barometer index rose to 50.9, its first time above the neutral 50 mark in months, while the 3-month index inched up to 49.3. Despite the modest gain, insufficient demand remains the top constraint, and staffing intentions continue to lag historical trends.
Sectoral sentiment remains mixed. Retail improved slightly but held at 53.4, still soft, while professional services and health led the pack with indexes above 55. Hiring plans remain cautious, with more employers expecting to reduce staff than add, and Alberta’s 12-month confidence index sits at 55.2, slightly above the national average.
Meanwhile, price increase expectations fell to 2.7%, their lowest level since January, and wage expectations held steady at 2.1%, providing cost clarity for landlords and occupiers. Still, uncertainty tied to tariffs, domestic logistics, and interest rates is keeping many businesses in wait-and-see mode.
For CRE professionals, the signal is clear: business sentiment is stabilizing—but market strategy should stay lean, sector-sensitive, and grounded in fundamentals.
Source: Canadian Federation of Independent Business, “Monthly Business Barometer – July 2025”
Connect with ClearView: Curious how business sentiment is influencing tenant decisions, leasing appetite, or rent expectations this fall? Let’s talk: info@cvpartners.ca