MNI BRIEF: Canada Factory Confidence Plunges On Tariff Threat
MNI (OTTAWA) - Canadian manufacturers’ confidence plunged the most since at least 2009 outside of the pandemic shutdown under the threat of U.S. tariffs, a Canadian Federation of Independent Business survey showed Thursday.
The industry's 12-month outlook fell 7.8 points in February to 48.6, the lowest since the start of last year.
That along with other export-sensitive industries such as wholesaling and transport pulled down the overall index 5 points to 49.5, the lowest since last April. Since Donald Trump's election in November the index has fallen each month from a peak of 59.8.
"The U.S. tariff threats disrupted the upward trend seen until November, and despite implementation delay, building uncertainty contributed to the steep drop in long-term optimism," the report said. (See MNI INTERVIEW:Canada PMI Hit By Weak CAD Amid Tariff, Slow GDP)
Small businesses plan to raise prices by an average 3.1% over the next year, the fastest since April and above the central bank's 1% to 3% inflation target band.