The Canadian Federation of Independent Business said Wednesday that business confidence in B.C. decreased in July.
According to CFIB’s latest business barometer index, B.C. is now the second most optimistic province in the country with an index of 70.3 compared with 72.3 in June. An index of 50 represents an equal balance of stronger and weaker business expectations.
With an index of 71.9, Newfoundland and Labrador is the most confident province.
The national index was down to 65.7 in July from 67.3 in June.
The CFIB said overall optimism across the country has seen a downward drift and, while the economy is growing, it is growing at a very modest pace.
The provinces with the lowest business confidence in July were Manitoba (60.1) and Prince Edward Island (62.3).
Forty-eight per cent of businesses polled in B.C. said the overall state of business is satisfactory, while 31% said it is good, and 27% cent said it is bad. Seventeen per cent of B.C. businesses plan to increase full-time employment and 19% plan to increase part-time employment. Seventy per cent of B.C. business owners say they will keep current levels of full-time employment or hire additional employees.
Tax and regulatory costs continue to be the most significant cost pressure in B.C. with 69% of business owners saying such costs cause difficulties for their business.
Fifty-seven per cent of B.C. small businesses say that insufficient domestic demand is their greatest business constraint, followed by shortages of qualified labour and working capital.
The most pessimistic industries included agriculture, construction, and hospitality.