Optimism among Canadian small- and medium-size businesses continues to improve, but at a reserved pace according to the Canadian Federation of Independent Business (CFIB).
The Business Barometer Index, which measures expectation of SME business performance over the next year, ended January at 65.2 – slightly above December’s 65.0 but not enough to register as a statistically significant increase.
Ted Mallett, vice-president and chief economist for CFIB, said, “The index remains below what it was at any point between January and July 2011. This means the economy is growing, but not at the pace at this point last year.”
Alberta businesses led the way as Canada’s most optimistic with an index level at 73.3.
All four Western provinces were well above the national average of 50.
Ontario and Quebec businesses slid in just below average, while those in the Atlantic region remain least optimistic.
Disappointing performance in the retail sector in December carried into the new year.
Sub-par index levels were also recorded from the hospitality and transportation sectors.
“There are signs of strength, though,” said Mallett. “The natural resources sector, including manufacturing and wholesale industries, remain quite upbeat with index levels approaching 70.
“Finance, insurance and real estate industries also appear to have shaken off some of their earlier caution.”
Measured on a scale between zero and 100, an index level above 50 means that owners expecting their businesses’ performance to be stronger in the next year outnumber those expecting weaker performance. According to past results, index levels rise above 65 when the economy is growing.
Jennifer Harrison
@JHarrisonBIV