Canadian Businesses Close the Year with Waning Optimism

Ottawa, ON – December 19, 2024 –The Canadian Chamber of Commerce’s Business Data Lab has released today its Business Insights Quarterly publication for Q4 2024, revealing another decline in near-term business sentiment, with a second consecutive drop in the Business Expectations Index. While the good news is that Canadian businesses generally anticipate fewer disruptions in the near term coming from costs, labour, finance and supply chains, the report highlights growing concerns about soft sales and weak consumer demand. With the outlook growing darker, Canadian businesses face a more pessimistic and highly uncertain path into 2025.

This shift in sentiment was measured even before Donald Trump’s latest U.S. tariff threats, raising fresh concerns for an already gloomy and volatile outlook. However, Quebec and Atlantic Canada are bright spots that are bucking the national trend, with cities like Quebec City and Halifax leading in business confidence. In contrast, businesses in Ontario and British Columbia are among the least optimistic in the country, especially in the large metros of Toronto and Vancouver.

Businesses have endured significant cost pressures over the past few years, but the landscape is shifting going into 2025. With inflation now largely under control, cost pressures are easing, and worries about weak sales and soft consumer demand are rapidly rising up the list of business concerns.

• Stephen Tapp, Chief Economist, Canadian Chamber of Commerce

Key Highlights from the Report

• Consumer Demand Takes Center Stage: For the first time in three and a half years, weak consumer demand has surpassed labour shortages to become the second biggest obstacle category for businesses.
• Quebec and Atlantic Canada Lead the Pack: Optimism is strongest in Quebec and Atlantic Canada, while Ontario and British Columbia trail behind.
• Sectoral Winners and Losers: There is some optimism in healthcare, professional services, and finance, while construction, accommodation and transportation struggle with operational challenges.
• Trump Tariffs Add Fuel to the Fire: Even before Trump’s tariff threats, businesses were bracing for tougher conditions. The latest developments could amplify uncertainty in 2025, which will be measured in Q1 2025 in the Business Insights Quarterly Report.

About the Canadian Chamber of Commerce — The Future of Business Success 

The Canadian Chamber of Commerce is Canada’s largest and most activated business network — representing over 400 chambers of commerce and boards of trade and more than 200,000 business of all sizes, from all sectors of the economy and from every part of the country — working to create the conditions for our collective success. The Canadian Chamber of Commerce is the undisputed champion and catalyst for the future of business success. From working with government on economy-friendly policy to providing services that inform commerce and enable trade, we give each of our members more of what they need to succeed: insight into markets, competitors and trends, influence over the decisions and policies that drive business success, and impact on business and economic performance.   

Media Contact

Rewa Mourad
Public Relations Specialist
rmourad@chamber.ca