Regina, April 26, 2018 - Today, the Canadian Federation of Independent Business (CFIB) released its latest monthly Business Barometer®, which reveals optimism among small business owners in Saskatchewan declined in April to an index of 54.6, down from 62.0 in March and now below the national average index of 56.6.
“After several months of improved optimism, Saskatchewan's Business Barometer Index saw small business optimism decline more than 7 points to reach 54.6—the second lowest level after Newfoundland,” said Marilyn Braun-Pollon, CFIB’s Vice-President, Prairie & Agri-business. “Employment plans are also weak with 15 per cent of owners looking to hire staff and 20 per cent planning lay-offs.”
Entrepreneurs’ concerns about taxes and regulatory costs also remained at a record high again in April at 70 per cent. “There are a number of clouds on the horizon as business owners across the country are facing many cost increases and much uncertainty,” noted Braun-Pollon. “The rail backlog, delayed Spring, ongoing concerns surrounding the federal tax changes and the threat of a federally-imposed carbon tax weigh heavy on the minds of Saskatchewan entrepreneurs. The ongoing challenges around the potential delay of the Trans Mountain Pipeline project adds to these growing concerns - a problem created by the BC government.”
“With 76 per cent of Saskatchewan small businesses opposed to a carbon tax, we commend the Saskatchewan government for standing up and challenging the federal government’s ability to impose a costly carbon tax on the province,” added Braun-Pollon. “We are urging the provincial government to stand up again for small businesses and NOT follow the federal government in limiting businesses’ access to the small business deduction based on passive investment revenue.”
Nationally, small business confidence fell for the third consecutive month in April, with the index dropping more than four points to 56.6, the third lowest reading in the past decade.
“The only other times confidence was this low, was during the 08-09 economic crisis and the 2015-16 energy price crunch” said Andreea Bourgeois, CFIB senior analyst. “Hiring plans remain weak for this time of year, although measures for general business health, investment plans and new orders are steady. With declines in confidence in all 10 provinces and 11 out of 13 industries, there’s just not a lot of optimism amongst Canada’s small business communities.”
Provincial Results: down across the board
Quebec returned to the top spot for small business confidence levels in the country at 68.7, despite dropping nearly four points in April. Nova Scotia fell seven, but still sits 12 points above the lagging national average. Saskatchewan also saw largest major confidence regression, falling 7.4 points to 54.6.
|
Confidence Index |
Change from March |
Quebec |
68.7 |
-3.9 |
Nova Scotia |
67.9 |
-7.1 |
Prince Edward Island |
65.3 |
-0.7 |
British Columbia |
61.4 |
-4.5 |
New Brunswick |
60.9 |
-1.6 |
Manitoba |
59.9 |
-1.3 |
Ontario |
56.9 |
-0.2 |
Alberta |
54.7 |
-1.6 |
Saskatchewan |
54.6 |
-7.4 |
Newfoundland & Labrador |
50.8 |
-1.9 |