Toronto, July 7, 2010 – Following a modest increase in May, optimism among Canada’s small- and medium-sized business owners dipped slightly in June. According to the latest business confidence survey findings from the Canadian Federation of Independent Business (CFIB), the Business Barometer® index finished the month at 66.4, down about a point from May’s 67.3 level.
“This latest reading is at the lower end of the average over the last ten months, and suggests that economic output is growing only at a modest 2.5 per cent clip,” explained CFIB vice-president and chief economist, Ted Mallett, adding that “with interest rate increases on the map, business owners are not overextending themselves.”
Looking at the results by region, optimism seems to bookend the country, with British Columbia and Newfoundland & Labrador leading the way with index scores of 72.1 and 70.7, respectively. Ontario business owners had a slight improvement in confidence last month, while those in Quebec dropped back. Along with Quebec, only Manitoba and Nova Scotia business owners had optimism below the national average.
Measured on a scale between 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 75 when the economy is growing. The June 2010 findings are based on 1,011 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.
For more information or to arrange an interview with Ted Mallett, contact Meghan Carrington or Adam Miller at 416 222-8022 or email [email protected]
Business Barometer is a monthly publication of the Canadian Federation of Independent Business and is a registered trademark.
CFIB is Canada’s largest association of small- and medium-sized businesses. Encouraging the development of good public policy at the federal, provincial and municipal levels, CFIB represents more than 105,000 business owners, who collectively employ 1.25 million Canadians and account for $75 billion in GDP. www.cfib.ca.