Canadian businesses more optimistic in first quarter: Statistics Canada

While cost pressures, labour challenges and tariff impacts remain present for many businesses, expectations have shifted modestly compared to late 2025. Photo by Peter J. Thompson/National Post filesArticle contentCanadian companies entered 2026 continuing to navigate cost- and labour-related obstacles, but with a greater sense of optimism, according to a new report from Statistics Canada.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe agency’s latest Canadian Survey on Business Conditions, released Friday, covers the first quarter of 2026 and gathers information from businesses on the current economic environment and their expectations of the conditions moving forward.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThe report said that Canadian businesses have a more positive outlook than in previous quarters, with about 73 per cent of respondents saying they are either very or somewhat optimistic about their prospects for the next year, compared to about 66 per cent from the third and fourth quarters of 2025.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentStatsCan said the optimism could be attributed in part to a smaller percentage of businesses expecting cost-related obstacles, such as inflation and interest rates, compared to the final quarter of 2025.Article contentMeanwhile, 13 per cent of businesses said they had an increase in Canadian sales in the 12 months prior to the survey, led by those in manufacturing, retail and wholesale trade. Roughly 16 per cent of businesses reported changing their marketing methods to further promote Canadian products.Article contentWhile Statistics Canada says cost-related obstacles may be easing for more companies, roughly 27 per cent of Canadian businesses had to pass cost increases onto customers in 2025 due to tariffs imposed by the United States.Article contentThirty-two per cent of respondents reported a negative impact on their business in the past year due to the imposed tariffs, with manufacturing, agriculture, forestry, fishing, hunting and wholesale trade being the most affected sectors.Article contentOverall revenue from 2025 compared to 2024 was roughly split three ways, as 32.3 per cent of businesses reported higher revenues, 37.2 per cent of businesses reported stagnating revenues and 30.6 per cent report lower revenues.Article contentThe first quarter results indicate that while cost pressures, labour challenges and tariff impacts remain present for many businesses, expectations have shifted modestly compared to late 2025.Article contentTrending Embassies evacuate in Middle East with Trump 'not happy' on Iran PMN Business Canada's economy shrinks, dragging 2025 growth to slowest pace since height of pandemic Economy This TSX top performer surged 18% this week with a potentially powerful 'catalyst' waiting in the wings, says TD analyst Investor The (high) opportunity cost of paying off your mortgage early Mortgages Canada's housing market suffers largest price decline among major economies, says BIS Real Estate Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Embassies evacuate in Middle East with Trump 'not happy' on Iran PMN Business Canada's economy shrinks, dragging 2025 growth to slowest pace since height of pandemic Economy This TSX top performer surged 18% this week with a potentially powerful 'catalyst' waiting in the wings, says TD analyst Investor The (high) opportunity cost of paying off your mortgage early Mortgages Canada's housing market suffers largest price decline among major economies, says BIS Real Estate