Business confidence among Canada’s small- and medium-sized enterprises continued to fall in June, according to the Canadian Federation of Independent Business (CFIB).
“The weight of concern over the prospects for world economies continues to push business confidence down in Canada,” Ted Mallett, CFIB’s chief economist and vice-president, said in a statement.
The Business Barometer index fell to 62.1 in June from 64.8 in May, essentially wiping out gains made since last summer.
The index is measured on a scale of 0 to 100, with an index level above 50 indicating that more than half of businesses expect business to be stronger in the next year. Historical performance shows that index levels usually range between 65 and 70 when the economy is growing.
B.C.’s small businesses indicated above-average optimism compared with many of their counterparts across Canada, posting 65.6 on the index this month. B.C.’s confidence levels were higher than those in most of Eastern Canada but behind Alberta (73.3) and Saskatchewan (72.5).
A recent confidence survey by TNS indicated that bad economic news in Europe is dampening Canadian consumer confidence. (See “Bad news in Europe drags confidence back down: TNS”–June 21.)
