Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsPosthaste: Business owners are losing faith in the economy — and they are not the only onesCFIB's business barometer fell sharply this month, with every province and every sector reporting a declineLast updated 41 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Most Canadian businesses expect their performance to be weaker over the 12 months. Photo by Getty ImagesSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorCanada’s small business leaders are losing confidence in the economy — and fast.The Canadian Federation of Independent Business’ business barometer sharply fell in May, as every province and every sector reported a decline.Overall, the barometer fell below the 50 threshold — meaning a majority of Canadian businesses expect their performance to be weaker over the next three and 12 months — to 46.3, down more than 11 points from April.“Many small firms are stuck in a grind,” Andreea Bourgeois, CFIB director of economics, said in a news release last week. “Demand is weak, costs — especially fuel — are high and conditions don’t show signs of improving. This environment is not conducive to strong orders or investment.”Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againCFIB said fuel prices are the top sore spot for small-business owners, while weak consumer demand is also a source of pain.Gas prices reached 180.4 cents per litre this week, which is down from 187.8 cents last week and from the monthly high of 190.4 cents on May 6, according to the Canadian Automobile Association.Oil prices have fallen in recent days as United States President Donald Trump has suggested an end to the war on Iran may be on the horizon, but West Texas Intermediate is still above US$90 a barrel.To address the added cost pressures, small businesses are expecting to raise their prices by an average of 3.1 per cent, outpacing April’s inflation rate of 2.8 per cent.“This is not the direction we’d like to see this data point go,” Bourgeois said. “Higher oil prices add upward pressure on inflation, while tariffs and other economic challenges are still weighing on economic growth. With the next Bank of Canada interest rate decision only weeks away, it is a tough spot to be in.”Economic pessimism, however, extends beyond small businesses.Only 47 per cent of Canadian CEOs believe the global economy is set to improve within the next year, and just 27 per cent believe the Canadian economy will grow within the same time frame, according to a January survey of 133 Canadian CEOs from PwC Canada.This is a drop from the same survey last year, although PwC said last year’s polling was conducted before it became clear Canada would be embroiled in a trade war with the U.S.“For the first time in over five years, Canadian CEO sentiment is moving in the opposite direction of global optimism,” Nicolas Marcoux, chief executive of PwC Canada, said in the report. “The headwinds in Canada —trade uncertainty, tariff pressures and slower adoption of transformative technologies like AI — are significant. But they’re also a catalyst. We’re seeing Canadian companies rise to the challenge by entering new sectors to build resilience and unlock growth.” Sign up here to get Posthaste delivered straight to your inbox.Both SK Hynix Inc. and Micron Technology Inc. have eclipsed a market capitalization of US$1 trillion on exploding demand, as investors become convinced the AI boom is here to stay. SK Hynix Inc. is particularly riding the wave, with the stock up 1,000 per cent over the past 12 months, while analysts believe Micron’s stock will double over the next year.10 a.m.: Bank of Canada financial stability reportToday’s data: U.S. first quarter real GDPEarnings: Costco Wholesale Corp., Royal Bank of Canada, Dell Technologies Inc., TD Bank, Canadian Imperial Bank of Commerce, MondoDB Inc., Dollar Tree Inc., Best Buy Co. Inc., BRP Inc.House flipping can be expensive if you don’t follow the rules. Since 2023, you cannot claim the principal residence exemption to shelter the capital gain realized on the sale of your home if you’ve owned it for less than 12 months. Even though these are fairly new rules, the Canada Revenue Agency can still challenge real estate “flips” that took place prior to 2023 if it feels a taxpayer has speculated and flipped a property for a quick profit. Tax expert Jamie Golombek tells what happened when the CRA questioned the $457,000 gain of one Vancouver taxpayer on the sale of a condo. Find out moreInterested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors. Sign up here.Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? 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