The optimism of Canada's small businesses is beginning to wane as massive shifts in commodity prices and exchange rates begin to rattle the economy.
Results from the fourth straight week of surveying by the Canadian Federation of Independent Business found that business optimism has fallen significantly in the past week. Its business barometer index dropped to 85.4 from last week's 90.9.
CFIB's chief economist Ted Mallett noted that continuing bad news in international markets has seriously curtailed small business operating plans.
According to the survey, more business owners are planning to reduce staff and fewer are expecting to add to full-time employment.
However, issues relating to credit availability have levelled off, with only a quarter of survey respondents reporting problems accessing bank financing.