Business confidence faltering as exporters face mounting pressures

Canadian business confidence remains weak for the third straight quarter, with exporters now the least optimistic sector, according to the latest Business Insights Quarterly from the Canadian Chamber of Commerce’s Business Data Lab.

The report highlights that goods exporters, historically more confident than other businesses, saw sentiment plummet in late 2024 amid rail and port strikes and increased trade policy uncertainty. Ongoing supply chain disruptions and rising tariffs continue to weigh heavily on their outlook.

“Supply chains are strained, tariff-driven price pressures are rising, and businesses — especially exporters — are struggling just to stay afloat,” said Patrick Gill, vice-president of the Business Data Lab.

Ontario, particularly its manufacturing hubs in Oshawa, London and Hamilton, is the least optimistic region. Businesses cite weak consumer demand as their top concern, surpassing labour shortages for the second consecutive quarter.

Despite these challenges, 73 per cent of businesses remain hopeful about the year ahead, though the Chamber warns optimism alone won’t be enough to navigate economic uncertainty.