Business optimism virtually unchanged in New Brunswick
For more details
New Brunswick Barometer
December 2011
Small business confidence saw little change in the month of November according to CFIB's latest survey. The National Business Barometer index was 63.7, virtually identical to October's 63.6 reading. This level is still lower than normal, however, as overhanging concerns about the potential spread of economic weakness out of Europe appear to be still at play. The Index has recovered 2.0 of the 6.6 points lost in August when the Euro currency and US fiscal policy crises hit world financial markets, suggesting the Canadian economy is performing at a slower pace, but has not dipped into recession.
Optimism in Alberta slipped a little, but still remains at a healthy 71.7, while businesses in BC and Manitoba also register above-average index scores. The least levels of optimism come from Nova Scotia (54.9), New Brunswick (59.1) and Ontario (58.9)-all with index levels below 60-suggesting only marginal economic growth in those regions.
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 November index for New Brunswick is 59.1, up half a point from its October level of 58.5 and remaining below the national average of 63.7
- 35 per cent of businesses in NB now say the overall state of business is good, same as last month; 51 per cent say is it satisfactory, 14 per cent say it is bad
- Employment plans remain a concern with only 11 per cent planning to increase full time employment levels while 18 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
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 EntrepreneursTM. 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.
