Business confidence amongst Canada’s small and medium-sized businesses slid to a three-year low in July, according to the Canadian Federation of Independent Business (CFIB).
The CFIB’s Business Barometer index dropped to 60.9 in July, down from 62.1 last month, the index’s lowest reading since July 2009.
“The index’s current position against GDP puts it very close to the zero-growth mark, suggesting Canada’s economy is nearing a standstill,” said Ted Mallett, CFIB’s chief economist and vice-president.
Small business confidence in B.C. is tracking below the national average, at 60.5 in July.
The most optimistic provinces are currently Saskatchewan (72.0), Alberta (70.3) and Newfoundland and Labrador (63.3), all of which saw an increase in confidence in July.
New Brunswick (64.8) and Manitoba (64.5) are above the national average, while Ontario (60.1) and Quebec (58.1) are slightly below. Index levels are lowest in Nova Scotia (54.0) and PEI (52.7).
According to the CFIB, the one bit of good news the index tracked is a rebound in hiring expectations. It found that 20% of business owners plan to hire full-time staff in the next three or four months, compared to 12.8% who say they will cut back. The organization said this is a “strong reading” for the middle of summer.
Measured on a scale of 0 to 100, an index level above 50 means owners expecting their businesses’ performance to be stronger next year outnumber those expecting weaker performance.
