Small biz confidence inches downward in April

Small business owner confidence continued to decline in April, following a bigger hit in March, according to the Canadian Federation of Independent Business (CFIB). The Business Barometer index fell half a point from March’s results, to 62.4.

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“After a promising January and February, more business owners appear to be disappointed with their firms’ performance so far this spring,” said Ted Mallett, CFIB’s chief economist and vice-president. “These latest results are back in line with what we saw in the last months of 2012 when the economy was exhibiting only lacklustre growth.”

Small business owners in Newfoundland and Labrador (69.1) are the most optimistic in the country, although confidence is rising in British Columbia (67.6), which overtook Saskatchewan (67.2) and Alberta (65.3). Quebec (64.1) and Ontario (63.2) are just above the national average, while Manitoba (61.7) and New Brunswick (58.1) are below. Nova Scotia (53.8) saw Canada’s biggest decline in business confidence, meaning Prince Edward Island (55.1) is no longer the lowest in the country.

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“The pattern across the country has been quite uneven,” added Mallett. “If we look at the results by industry, the biggest declines in optimism occurred in manufacturing and retail, while the confidence of construction, wholesale and business services firm owners has remained steady.”

Reports on new orders and accounts receivables are down in recent months, although so are shortages of skilled labour, now reported by 29% of respondents, which is down from the mid-30s range in late 2012.

Measured on a scale of 0 and 100, an index level above 50 means owners expecting their businesses’ performance to be stronger in the next year outnumber those expecting weaker performance. According to past results, index levels normally range between 65 and 70 when the economy is growing at its potential.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.