Business optimism in NB still sputtering

For more details

New Brunswick Barometer

November 2011

Of further interest:

• Business Barometer: Business Barometer ^®: Small business optimism climbs incrementally

The national index of CFIB's Business Barometer^TM for the month measured in at a modest 63.6, marginally higher than September's 62.7 and the 61.7 level posted in August when the latest round of sovereign debt and banking sector worries from Europe started washing around the world.

Among the provinces, Alberta and Saskatchewan were in a dead heat for top spot, scoring 72.2 and 73.2, respectively. In contrast, New Brunswick and Nova Scotia were the only two provinces not able to reach 60 in October.

All of this is outlined in the attached Business Barometer for October 2011. The barometer reports on small business expectations and business confidence.

The following are some provincial findings of note:

• The October index for New Brunswick is 58.5, down a couple of points from its September level of 60.8 and remaining below the national average of 63.6
• 35 per cent of businesses in NB now say the overall state of business is good, same as last month; 53 per cent say is it satisfactory, 13 per cent say it is bad
• Employment plans remain a concern with only 10 per cent planning to increase full time employment levels while 17 per cent of NB businesses plan to decrease full time work.
• Significant concerns over fuel and energy costs, along with wage costs, continue to weigh heavily on the minds of New Brunswick business owners

A one-page provincial summary is attached, along with the national report.

Based 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. The index summarizes results from the last three months in Nova Scotia and New Brunswick and from the last four months in Prince Edward Island and Newfoundland and Labrador.

For further information please contact Richard Dunn at (506) 855-2526.

As Canada's largest association of small- and medium-sized businesses, CFIB is Powered by Entrepreneurs^TM. Established in 1971, CFIB takes direction from more than 108,000 members in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.