Small biz confidence takes hit

The confidence of small business owners took a hit in March after two months of encouraging growth, according to the Canadian Federation of Independent Business (CFIB). The Business Barometer index dropped three and a half points from February’s results to 62.9.

Small business owners in Saskatchewan (71.5) and Newfoundland and Labrador (69.4) are the most optimistic in Canada, while the biggest declines in confidence occurred in Alberta (66.7) and Ontario (61.9). Quebec (66.4), British Columbia (65.7), and Manitoba (64.5) are above the national average, while New Brunswick (60.4), Nova Scotia (60.4) and Prince Edward Island (56.4) are below.

Full-time hiring intentions are at a post-recession high, as 27% of owners expect to hire full-time staff in the next few months. More worrisome is news that only 38% of entrepreneurs say their businesses are in “good” shape, which is down from the low-40s reported through 2012. In comparison, 14% of owners say their businesses are in “bad” shape.

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.

Also read:

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Staff

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