Skip to main content
economy

Canada's small business owners continue to fret.

Their confidence fell in August for the third month in a row, says the Canadian Federation of Independent Business (CFIB), citing a drop in its confidence index to 64.9 from 65.7 in July. That's well below a peak of 69.9 in March, the organization says, and suggests the economy is growing at a modest rate of 2 per cent.

"Business optimism fell in seven of 10 provinces, but it was mainly weaker sentiment among firms in western Canada that drove the national index lower," the CFIB said.

"A nearly five-point decline in B.C., coupled with one- to three-point reductions in the barometer indexes in Alberta, Manitoba and Saskatchewan, drove the region to below the national average. Shifts in optimism were mixed in Atlantic Canada, rising in Nova Scotia but falling elsewhere in the region.

"Against the trend, business owners in Ontario and especially Quebec recorded improving sentiment in August."







A reading above 50 means small business owners who expect a better performance over the next year outnumber those expecting a weaker showing.

Citing broad-based slowing given weaker readings in eight of 13 industries, Jonathan Basile, vice-president of economics at Credit Suisse, questioned whether job cuts may be coming, given the CFIB noted "there is ample evidence that business owners are seeking efficiencies wherever possible.

"Short-term hiring expectations have turned negative for both full- and part-time positions."



Interact with The Globe