Rising fuel costs tied to the Iran conflict are hitting Canadian small and medium-sized businesses hard. The Canadian Federation of Independent Business reports a sharp decline in business confidence as costs surge.
Fuel expenses saw the largest monthly increase, jumping 14 percentage points to 50%. Christina Santini, CFIB director, noted that transportation businesses were most affected due to immediate increases in daily operations.
The 12-month outlook fell nine points to 55.8%, with short-term confidence also dropping seven points to 54.5%. Insurance and taxes remain high but rising fuel costs are compounding pressures across sectors.
Businesses face tough decisions as absorbing costs becomes unsustainable. Price hikes may follow, though consumer tolerance is limited. Demand is already strained, worsening the outlook further.
