Business confidence falls slightly in June - remains in line with 2010 levels
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Business Barometer
Full report
July 2011
Ted Mallett, Vice-President & Chief Economist
Business confidence among Canada's small business owners fell slightly in June. CFIB's Business Barometer® Index came in at 66.3 last month, down from 66.9 in May and its 70.7 April peak. Although a negative result, the index and other general indicators of business performance from our monthly survey are in line June 2010 levels.
CFIB Business Barometer Index and GDP
Measured on a scale between 0 and 100, an index level above 50 means owners expecting their business' 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.
Business owners in the West and in Newfoundland and Labrador are still generally more upbeat about their prospects for the year ahead compared to those in Central Canada and the Maritimes, but the differences narrowed slightly in June compared to the previous month. Confidence fell in 11 of 13 industry categories, suggesting the shift in mood is pervasive and not localized to any single sector or region. The most optimistic business owners are in financial services, wholesale trade and personal services. Those in business services and manufacturing are also slightly more positive than the norm, while the hospitality and agriculture sectors continue to be the least optimistic.
