Canadian businesses reported weaker sales expectations in the third quarter as inflation, tariffs and hiring difficulties remained common concerns.
Statistics Canada surveyed businesses across the country from July to August 2026.
Only 14.5% expected sales to rise over the next three months, down from 19.4% in the second quarter. Another 13.9% expected sales to fall.
Most businesses still viewed the coming year positively. About 72.6% said they were somewhat or very optimistic, compared with 66.8% in the second quarter.
Inflation was the most common obstacle, reported by 41.6% of businesses. It was a concern for 58.3% of businesses in accommodation and food services, 51.8% in construction and 48.7% in manufacturing.
About 59.8% expected at least one cost-related problem over the next three months, down from 64.3% in the previous quarter.
Many customers could face higher prices. About 20.6% of businesses expected to raise their prices within three months. The rate was highest in accommodation and food services at 34.6%, wholesale trade at 29.6% and retail trade at 27.8%.
Nearly one-third expected the tariff dispute to hurt their business over the next year.
Manufacturers were most likely to expect harm, at 49.7%. The rate was 47.3% in transportation and warehousing and 45.1% in wholesale trade.
About 27.4% of businesses said they had charged customers more because of tariffs. Another 30.4% said they were likely to do so over the next 12 months.
Finding skilled workers was a concern for 25.2% of businesses. The problem was most common in manufacturing, accommodation and food services, and health care and social assistance.
One-quarter of businesses planned to use artificial intelligence within the next year, up from 14.5% in 2025 and 10.6% in 2024.
More than half had no plans to use AI. Most of those businesses said it was not useful for the goods or services they provide. Others pointed to security concerns or limited knowledge of the technology.
About 2.7% reported the theft of sensitive business data during the previous year. Roughly half of those businesses lost money or paid more for security. Nearly 48% faced disruptions to their operations.