Small businesses are worried that a second wave will mean a tough winter just when they need some good news
The optimism that spiked in the summer as Canada’s businesses began to reopen after the devastating coronavirus lockdown, is weakening again.
With infections rising again, confidence among small business owners is falling according to the latest Canadian Federation of Independent Business (CFIB) Business Barometer.
The index was down 5.9 points to 53.3, well below the level of 65 that normally indicates that the economy is growing at its potential.
With businesses operating at just under 71% capacity in October, unchanged since August, business owners are increasingly concerned about a second-wave of virus cases.
“The jump in COVID-19 cases is cause for anxiety in the small business sector, especially as some regions have renewed restrictions on businesses in the hospitality and personal services sectors, but the decline in optimism is pretty broad based,” said Ted Mallett, CFIB’s chief economist.
Regional sentiment
Seven of the ten provinces reported weaker sentiment this month:
- Nova Scotia (63.1)
- British Columbia (60.3)
- Saskatchewan (57.9)
- Ontario (57.3)
- New Brunswick (56.1)
- Manitoba (56.1)
- Alberta (52.0)
- Newfoundland and Labrador (49.2)
- Prince Edward Island (44.0)
- Quebec (42.2)
The least optimistic sectors were hospitality and transportation while, perhaps surprisingly, the arts and recreation were most confident.
Survey says: Small business owners still have a long list of COVID worries. pic.twitter.com/IhXqecJrwu
— Laura Jones (@CFIBideas) October 29, 2020
