TORONTO, June 27, 2013 /CNW/ - Small business confidence fell sharply in
June, and is now at its lowest point since July 2009, according to the
Canadian Federation of Independent Business (CFIB). The Business
Barometer® index fell almost three points to 59.4 from May's 62.1, a
fourth consecutive monthly decline.
"Weak demand appears to be driving this," said Ted Mallett, CFIB's chief
economist and vice-president. "Only 73 per cent of respondents report
that new orders are "normal" or better, while 40 per cent say domestic
demand is limiting business expansion—both out of tune with recent
The drop in optimism is centred almost entirely in Ontario and Quebec
(56.8 and 55.3, respectively). Confidence remains strongest in Alberta
(68.6), with Saskatchewan (67.3) edging up. Newfoundland and Labrador
(66.3) and British Columbia (65.6) are also above the national average.
There is very little change in the under-performing Maritimes, with New
Brunswick (59.2) hanging around the national average, and Nova Scotia
(53.6) and Prince Edward Island (53.3) lagging behind. By sector,
construction, natural resources and hospitality were weakest, while the
information and financial services sectors remained strong.
"Despite weak results, there are signs we are nearing a floor," added
Mallett. "Short-term employment plans are net positive, while reporting
of the general state of business health is holding steady."
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 June 2013 findings are based on 1,708
responses, collected from a stratified random sample of CFIB members,
to a controlled-access web survey. Findings are statistically accurate
to +/- 2.4 per cent 19 times in 20.
Read the June 2013 Business Barometer® at www.cfib.ca/barometer.
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