Dear Members,
The Canadian Chamber’s Business Data Lab (BDL) just released its Q3 report – a national snapshot of how Canadian businesses are feeling and what they’re currently facing.
What stood out:
- Growth has cooled. After a sharp 1.6% annualized GDP decline in Q2, the BDL is now pointing to a 1.7% growth in Q3 and 1.3% for 2025 overall.
- Confidence has started to stabilize nationwide, led by Atlantic Canada. After five consecutive declines, overall business confidence held flat in Q3, signaling that businesses remain cautious.
- Trade tensions are reshaping behaviour. More businesses are planning for uncertainty by diversifying suppliers and postponing investments while taking advantage of opportunities. U.S. sales were strong and CUSMA utilization jumped to 53% in July (a 20-year high), underscoring what’s at stake in CUSMA renegotiations.
- Costs and demand are big hurdles. Rising input/financing/compliance costs are the top obstacle, with sluggish consumer demand causing concern.
- Labour market pressure is easing – but not gone. Vacancies are down and unemployment is up slightly, yet shortages persist in construction and hospitality; youth unemployment remains above pre-pandemic levels, but data points to educational and skill mismatches with this demographic.
You can read the full report here.
Why this matters for PEI
Although the BDL report is national in scope, several themes are relevant locally; cost pressures and sector specific labour challenges – especially in construction and accommodations & food services – mirror what we hear from our members. The relative strength noted in Atlantic Canada is encouraging, but constant volatility around tariffs and the pending CUSMA review will remain key watch-items.
What’s next
We’ll dig deeper once the PEI Business Economic Council releases its first annual report on key economic indicators for PEI. We expect this to happen next month.
With warm regards,
Bianca McGregor
CEO, GCACC