TORONTO, May 30, 2013 /CNW/ - The confidence of small business owners
fell slightly in May, the third consecutive monthly decline since
February, according to the Canadian Federation of Independent Business
(CFIB). The Business Barometer® index dropped a third of a point to
62.1 from April's 62.4.
"It's a fairly small decline, but the index is now at its lowest point
since the summer of 2012, when the economy went through a slow-motion
act," said Ted Mallett, CFIB's chief economist and vice-president.
"Canadian small business optimism remains cool this spring."
Small business owners in Alberta (68.8) are the most optimistic in the
country, although Newfoundland and Labrador (68.3), Saskatchewan
(65.8), and British Columbia (64.9) are all above the national average.
Ontario (61.9), and Manitoba (61.0) are slightly below the national
average, while New Brunswick (58.1) and Prince Edward Island (55.6) are
further back. The biggest declines occurred in Quebec (58.9), which
dropped five full points, and Nova Scotia (50.0), which is by far the
lowest in the country.
"Despite a reasonably good outlook for employment and capital
investment, there are general signs of sluggishness, including a
greater concern over levels of customer demand," added Mallett.
"Manufacturing, transportation and hospitality are the weakest sectors
this month, while the information and financial services sectors are
above the norm."
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 May 2013 findings are based on 1054
responses, collected from a stratified random sample of CFIB members,
to a controlled-access web survey. Findings are statistically accurate
to +/- 3.0 per cent 19 times in 20.
CFIB is Canada's largest association of small and medium-sized
businesses with 109,000 members across every sector and region.
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