TORONTO, Dec. 5, 2012 /CNW/ - Optimism among Canada's small- and
medium-size businesses declined in November, according to the Canadian
Federation of Independent Business (CFIB). The Business Barometer®
index fell from 65.6 in October to 62.9.
"Small business confidence took a step backward last month, although
it's still above the levels we observed in the June-through-September
period," said Ted Mallett, CFIB's chief economist and vice-president.
"The results suggest that Canada's economy continues to grow at a
Small business owners in Newfoundland and Labrador (74.1) remain the
most optimistic in the country. Entrepreneurs in British Columbia
(67.1), Alberta (68.3) and Saskatchewan (66.4) are above the national
average. Ontario (63.0), New Brunswick (61.4), Manitoba (61.3), Nova
Scotia (60.8), Quebec (60.2) and Prince Edward Island (52.1) are at or
below the national average.
"Much of the decline in the overall average can be explained by
unusually low confidence in natural resources, manufacturing and
business services," added Mallett. "On the other hand, the
consumer-facing side of the small business sector looks relatively
upbeat, with retail, hospitality and personal services all showing
Full-time hiring plans are uncharacteristically strong for this time of
the year: 22 per cent of business owners plan to hire full-time staff
in the next three or four months—the highest CFIB has seen, since the
recession—compared to 13 per cent who say they will cut back. Overall,
40 per cent of business owners described their state of business to be
in "good" shape, about three-times the 12 per cent who said their state
of business is "bad."
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. The November 2012 findings are based on
981 responses, collected from a stratified random sample of CFIB
members, to a controlled-access web survey. Findings are statistically
accurate to +/- 3.1 per cent 19 times in 20.
As Canada's largest association of small- and medium-sized businesses,
CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes
direction from more than 109,000 members in every sector nationwide,
giving independent business a strong and influential voice at all
levels of government and helping to grow the economy.
SOURCE: CANADIAN FEDERATION OF INDEPENDENT BUSINESS
For further information:
or to arrange an interview with Ted Mallett, contact Gisele Lumsden at 416 222-8022 or email email@example.com