While it continues to be much higher than the lows in late 2008, confidence among B.C. small- and mid-sized business (SMB) owners fell for the second straight month in December, according to the Canadian Federation of Independent Business.
The B.C. barometer index fell to 67.5 in December from 68.1 in November (an index of 50 represents an equal balance of stronger and weaker business expectations).
In October, the B.C. index was 70. B.C. was the fifth most optimistic province in Canada in December.
The CFIB said uncertainty in provincial politics, the HST referendum and even provincial regulatory changes such as the impaired driving rules have not helped to create an environment that supports business optimism in B.C.
While B.C. businesses optimism fell last month, the national average was pushed higher by renewed optimism in manufacturing, natural resources, financial services and personal services.
The national index of 69.3 in December was more than five points above November’s level.
Retailers were also more optimistic in December, but the retail sector is still was below the national average.
In B.C., 75% of employers do not plan to make changes to full-time employment levels, while 10% intend to increase full-time employment and 15% intend to decrease it.
Almost half (49%) of B.C. businesses say the overall state of business is satisfactory, while 30% say it is good and 21% say it is bad.
Tax and regulatory costs continue to be the most significant cost pressure in B.C.
More than half (55%) of small businesses in B.C. say insufficient domestic demand is their greatest business constraint.