B.C.'s small and medium-sized businesses grew more optimistic last month, according to Canadian Federation of Independent Business (CFIB) data released this morning.
The province's business confidence leapt to 64.7 in October from 59.0 the previous month, although the level remains slightly below the Canadian average.
Nationally, the Business Barometer index increased 3.6 points to 65.6 in October from 62.0 in September. The October index level was the highest point hit since April.
"October's gains are the biggest one-month improvement in business confidence we've seen in two years," said Ted Mallett, CFIB's chief economist and vice-president. "Our survey results suggest the economy is shaking off some of the sluggishness we've seen since the spring."
Currently leading the country for business optimism are:
- Newfoundland and Labrador (76.7);
- Alberta (72.2); and
- Saskatchewan (67.8).
"By sector, manufacturing, professional services and information, arts and culture are all showing above-average confidence," said Mallett. "It looks as though some of this is being driven by better economic news from the United States."
The CFIB also noted that full-time hiring plans are better than average for this time of year, with 19% of business owners planning to hire full-time staff in the next three or four months, compared with 12% who say they will cut back.
The Business Barometer index is measured on a scale of 0 to 100, where a level above 50 means that owners expecting their businesses performance to be stronger in the next year outnumber those expecting weaker performance. According to the CFIB, index levels normally range between 65 and 70 when the economy is growing "at its potential."
