Even if whacky is the norm in B.C. politics, the current political uncertainty in the province had businesses on edge in November.
Confidence among small- and mid-sized business owners in B.C. fell from 70.0 in October to 68.1 in November on the Canadian Federation of Independent Business’ (CFIB) business barometer.
B.C. was the fourth most optimistic province in Canada last month, the second most optimistic in October and the seventh most optimistic in September.
Brian Bonney, the CFIB’s director of provincial affairs said that, in addition to uncertainty around the HST and potential minimum wage hikes, business owners are wondering who will be the next liberal leader and premier in B.C.
“But overall, we have had a bit of a plateauing effect with optimism in B.C. this year,” he said, noting the business barometer has been on a stable, albeit sometimes declining, trajectory.
He noted when Premier Gordon Campbell announced a 15% personal income tax cut last month, business confidence and consumerism were both driven upward.
“It told small business owners that it was okay to take a risk again and purchase a little more inventory or try that new marketing idea,” said Bonney.
But with the B.C. Liberals reneging on the tax cut a couple weeks later, business confidence fell again.
“Business owners don’t know what to expect next,” said Bonney.
He also said the holiday season brings about a general optimism and confidence among retailers.
“But I don’t think we’ve seen that as much as in previous years,” he said.
Even though retailers may not have boosted inventories as high this season as in other holiday seasons, “they’re still confident they can get product off the shelf,” said Bonney.
According to the CFIB, 50% of B.C. businesses say the overall state of business is satisfactory, 30% say it is good and 20% say it is bad.
CFIB says that tax and regulatory costs continue to be the most significant cost pressure on B.C. businesses.