Uptick is the first so far in 2018
A measure of confidence among Canada’s small businesses has finally shown some positivity after four consecutive months of lagging results.
The Small Business Barometer from the Canadian Federation of Independent Businesses posted a reading of 62.5 in May, rising almost 6 points from the April figure.
That moves the index closer to the 65 to 70 range which normally indicates that the economy is growing at its potential and a majority of owners expect their business’s performance to be stronger in the next year.
“The current confidence level isn’t back up to the last peak we observed in May 2017, but there is a noticeable improvement, especially in Ontario and PEI. The improved outlook could be a reflection of better weather in May over April, but we are always happy to see confidence go up, because it’s a sign of better business and economic conditions” said Ted Mallett, CFIB’s Chief Economist.
Still reeling from the price crunch in resources during 2015-2016, Saskatchewan, Newfoundland & Labrador, and Alberta, are still showing softer confidence than other parts of Canada.
Hiring intentions have improved but are below typical springtime levels, but 40% of owners said their business is in good shape compared to 9% who said it’s in bad shape.
Financial services among the most confident
There was a rise in confidence for 8 of the 13 main sector groups in the survey with financial services and transportation leading.
Confidence was weak in resources and hospitality.
