FX.co ★ Canada Small Business Confidence Shows Cautious Optimism for 2026

The CFIB Business Barometer's long-term index for Canada, which assesses expectations for business performance over a 12-month period, experienced a slight decline in January 2026, settling at 59.5 compared to December's three-year peak of 59.9. This figure indicates that numerous small businesses are maintaining cautious optimism as they look to the coming year. Confidence levels improved notably in Manitoba, New Brunswick, Quebec, and Nova Scotia, with each of these provinces achieving index scores of 60 or higher. Additionally, the short-term optimism index, which provides a three-month outlook, increased by 4.2 points to 52.4, reflecting a modest uptick in sentiment. Nonetheless, short-term business confidence remains relatively muted across all provinces, with index levels ranging from the mid-40s to mid-50s, underscoring persistent economic uncertainties as 2026 begins.