Business confidence wobbly as uncertainty lingers

Economic uncertainty linked to ongoing trade talks between Canada and its largest trading partner continues to weigh on the minds of businesses.

The latest Business Outlook Survey, released this week by the Bank of Canada, found that most businesses are waiting for clarity about the future before investing in their organization. Confidence is slightly higher than in early 2025, after the US administration first rolled out its shift to a tariff-based approach to global trade.

“Ongoing concerns of a recession are offsetting the continued gradual improvement in business sentiment, leaving firms’ outlooks and plans largely unchanged, on balance,” the survey states. “Measures of both business activity (including sales, investment and employment) and capacity continue to weigh negatively on the BOS indicator, reflecting ongoing soft demand and cautious planning.”