Small and mid-sized businesses in Canada are maintaining a cautious outlook to their futures. The latest Canadian Federation of Independent Business expectations survey results showed that the Business Barometer index was down somewhat. The index stood at 104.0 in March, a slight decrease from 104.2 in December and 108.4 in the previous September.
The uncertainty in financial markets, energy markets and concerns about the U.S. economy are giving business owners reason to pause. This is the first time CFIB’s index has remained this low for two consecutive quarters, although the findings are still far from expressing profound pessimism. Businesses owners reporting stronger performance in the past year (34%) still slightly outnumbered those reporting weaker performance (30%).
On the pessimist side: Manufacturers and transportation companies (confronted with rising fuel prices). These two sectors are also dealing with a strong Canadian dollar. On the optimist side: hospitality and personal services, retail trade, financial and social services. Morale was lowest in Alberta, where the index reached its lowest level in five years. Business owner confidence was also down in British Columbia, Ontario and Quebec. Business owners in Newfoundland and Labrador are now the most optimistic, with their quarterly index rising for the fourth consecutive time, followed closely by Saskatchewan.