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August 27, 2025SURVEY ON BUSINESS CONDITIONS: Q3 2025 Statistics Canada has conducted its 20th iteration of the Canadian Survey on Business Conditions. In July and early August, Statistics Canada surveyed businesses to collect information on businesses' expectations, obstacles, plans and practices. In these results, there are new questions about the impacts of the US administration and the changing tariff landscape.
The results reported here are a selection of the impacts found for Nova Scotia businesses, by industry, by size of business (measured by number of employees), by age of business and by urban or rural location. There are comparisons of the Nova Scotia average (all industries, ages, sizes, locations) with the national and provincial averages. The horizontal axis in all charts measures the share of businesses reporting each outcome. The total for many outcomes does not add to 100% of respondent businesses as many replied that the outcome was not applicable in their circumstances, or data were suppressed.
Future outlook over the next 12 months
In Nova Scotia, 29.2% of businesses were very optimistic about the next 12 months; a further 50.2% were somewhat optimistic, 8.5% were somewhat pessimistic and 2.8% were very pessimistic. Business optimism was notably lower (and pessimism higher) at the national level, particularly in Ontario.
Business expectations for the next three months
The outlook for employment was stable for 85.1% of Nova Scotia businesses in the next three months. Rising employment is expected among 8.9% of Nova Scotia businesses while declining employment is expected by 6.0% of Nova Scotia businesses.
Most businesses in Nova Scotia (59.8%) expect stable job vacancies with more expecting declining vacancies (6.8%) then increasing vacancies (4.0%).
The majority of businesses in Nova Scotia (67.8%) expect stable sales while 18.9% expect rising sales and 8.9% expect declining sales.
Prices are expected to be stable for 75.8% of Nova Scotia businesses while 17.9% expect rising prices. A further 1.7% of Nova Scotia businesses expect declining prices.
Almost three quarters (72.9%) of Nova Scotia businesses expect stable demand while 18.6% expect increasing demand and 8.6% expect declining demand.
Stable profitability is expected by 62.5% of Nova Scotia businesses. Expectations of falling profitability (21.7%) outweighed expectations of rising profitability (11.7%).
Rising operating income is expected by 15.7% of Nova Scotia businesses while higher operating expenditures are expected by 37.2% of Nova Scotia businesses. Stable operating income is expected by 70.8% of Nova Scotia businesses. Stable operating expenditures were expected by 59.9% of Nova Scotia businesses.
Cash reserves are expected to remain stable for 64.1% of Nova Scotia businesses while 6.3% expect rising cash reservices and 18.5% expect falling cash reserves.
Capital expenditures are expected to be stable for 69.3% of Nova Scotia businesses; rising for 11.3% and falling for 5.1%.
Training expenditures are expected to be stable for 63.2% of Nova Scotia businesses while 10.7% expect higher expenditures on training.
About two thirds of businesses in Nova Scotia (65.1%) expect stable marketing expenditures in the next three months while 6.8% expect rising marketing expenditures.
Although research and development (R&D) expenditures are not relevant for the majority of businesses, most businesses that conduct R&D expect stable spending (38.5%) in the next three months.
Although few Nova Scotia businesses participate directly in international trade, the majority of these expect stable imports and exports in the next three months.
Work location
Nova Scotia businesses were asked about the expected work locations of staff in the coming three months. 85.3% of Nova Scotia businesses expect staff to work exclusively or mostly at a primary worksite. About 9.0% of businesses expect their workers to be mostly or exclusively working remotely while a further 5.7% expect staff to be split between onsite and remote work.
Obstacles for businesses
As part of the Survey of Business Conditions, businesses were asked about their obstacles. Among Nova Scotia businesses, 30.1% reported no substantial obstacles expected in the next three months (up from the previous quarter). Across Canada, 21.8% of businesses reported no obstacles.
When asked what was the one most pressing obstacle for Nova Scotia businesses (across all industries), inflation (9.8%) along with recruiting skilled employees (10.2%) were the most widely reported.
The most acutely-felt obstacles in Q3 2025 were cost-related. Obstacles in this category were reported by 54.5% of Nova Scotia businesses. General inflation was the most prevalent cost obstacle.
Labour-related obstacles were reported by 35.9% of Nova Scotia businesses, including: labour force shortages as well as recruiting and retaining skilled employees.
Supply-chain issues were reported as business obstacles by 16.3% of Nova Scotia's businesses, a notable decline from the previous quarter.
Market conditions, financing, regulatory barriers and technological limitations were less commonly cited obstacles.
Artificial intelligence
Over the next 12 months, 68.8% of Nova Scotia businesses have no plans to adopt artificial intelligence (AI) tools in their work while 14.5% of Nova Scotia businesses planned to use AI (the same as the national share).
Impacts of US administration and changing tariff landscape
In Q3 2025, Nova Scotia businesses were asked new questions about how the changing tariff landscape and the US administration is having an impact on business operations and results.
The majority of Nova Scotia firms reported no impact (42.8%) or unknown impact (20.6%) from changes to US tariff policy. Among those that reported impacts, the vast majority reported major negative impacts (13.7%) or minor negative impacts (21.8%).
Likewise, the imposition of Canadian tariffs on US goods imports had no impacts (45.2%) or unknown impacts (21.7%) for the majority of Nova Scotia businesses. Major negative impacts were reported by 12.9% of Nova Scotia businesses along with minor impacts for 19.8% of Nova Scotia businesses.
Elimination of interprovincial trade barriers had no expected impacts (54.6%) or unknown impacts (21.6%) for over three quarters of Nova Scotia businesses. 11.8% of Nova Scotia businesses expected minor positive impacts while 5.3% expected major positive impacts.
Over one third of Nova Scotia businesses (34.4%) expect that the US administration will lead to higher business uncertainty. Almost all other businesses expected no impact (32.5%) or unknown impacts on business uncertainty as a result of the US administration.
Almost 80% of Nova Scotia businesses felt that the US administration would have no impact (50.0%) or unknown impact (28.3%) on domestic sales while similar numbers expected rising domestic sales (10.7%) as expected falling domestic sales (11.1%) as a result of the US administration.
Most businesses felt that the US administration would have no impact on input costs or unknown impacts on input costs or that US administration's effects on input costs were not applicable. Among remaining firms that had clear expectations about cost impacts resulting from the US administration, the overwhelming majority expected rising goods input costs.
Likewise, almost two-thirds of Nova Scotia businesses felt that there were no (40.1%) or unknown (25.9%) impacts of the US administration on prices for the products they sell. However, a substantial minority (30.8%) expected that the US administration would drive up selling prices.
Source: Statistics Canada. Table 33-10-1055-01 Future outlook over the next 12 months, third quarter of 2025; Table 33-10-1018-01 Business or organization expectations over the next three months, third quarter of 2025; Table 33-10-1019-01 Business or organization obstacles over the next three months, third quarter of 2025; Table 33-10-1020-01 Most challenging obstacle expected by the business or organization over the next three months, third quarter of 2025; Table 33-10-1054-01 Percentage of workforce anticipated to work on-site or remotely over the next three months, third quarter of 2025; Table 33-10-1045-01 Use of artificial intelligence (AI) by businesses or organizations in producing goods or delivering services over the next 12 months, third quarter of 2025; Table 33-10-1028-01 Level of impact of tariffs or trade barriers on business or organization, third quarter of 2025; Table 33-10-1030-01 Expected impacts of the new United States administration over the next 12 months, third quarter of 2025
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