Regina, June 27, 2019 – Today, the Canadian Federation of Independent Business (CFIB) released its latest monthly Business Barometer®, which reveals optimism among small business owners in Saskatchewan improved in June to an index of 54.5, up 5.4 points from 49.1 in May. However, the index is still 7 points below the national average index of 61.5.
“It is encouraging to see Saskatchewan’s small business confidence increase in June and we hope this trend continues,” said Marilyn Braun-Pollon, CFIB’s Vice-President, Prairie & Agri-business. “However, Saskatchewan’s index is still almost 11 points below the range of index levels (65-70) normally associated when the economy is growing at its potential.”
CFIB’s June Business Barometer® survey was completed on June 17. “We’re hoping the most recent province wide rainfall will help further improve optimism in the months ahead,” added Braun-Pollon.
Nationally, small businesses had a sunnier outlook in June, with confidence levels going up nearly two index points to 61.5 on the CFIB’s Business Barometer®, the highest level since August 2018.
“We saw confidence increases in nearly all provinces this month,” said CFIB’s Vice-President and Chief Economist, Ted Mallett. “Optimism levels are still behind what we saw in 2014 and have a way to go before they’re back to full health, but this month’s reading bodes well for long-term investment plans.”
Provincial results: Optimism gains in nearly all provinces
Confidence improved in nine out of 10 provinces this month. Prince Edward Island remained the most upbeat at 68.4, followed by Quebec (67.6), Nova Scotia (63.9 – the only province to register a minor dip this month), and Ontario (62.6). Alberta posted another optimism jump in June, climbing 7.2 index points to 59.0. Saskatchewan (54.5), Manitoba (55.4) and New Brunswick (57.2) also posted healthy index point gains. British Columbia (53.8) and Newfoundland & Labrador (50.0) posted more modest gains and trailed the rest of the country.
Highlights of the Saskatchewan Business Barometer for June:
- 30% of businesses in Saskatchewan say their overall state of business is good (41% nationally); 17% say it is bad (13% nationally);
- 11% plan to increase employment in the next 3 months (18% nationally) and 16% of Saskatchewan businesses plan to decrease full-time employment (10% nationally);
- Insufficient domestic demand is the main operating challenge (50%), followed by shortage of skilled labour (28%) and management skills, time constraints (20%);
- Major cost pressures for small business include: tax, regulatory costs (68%), fuel, energy costs (55%), insurance costs (51%), and wage costs (48%).
Read the June Business Barometer®
Measured on a scale of 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. One normally sees an index level of between 65 and 70 when the economy is growing at its potential. June 2019 findings are based on 711 responses, collected from a stratified random sample of CFIB members, to a controlled-access web survey. Data reflect responses received through June 17. Findings are statistically accurate to +/- 3.7 per cent 19 times in 20.
To arrange an interview with Marilyn Braun-Pollon, Vice-President Prairie & Agri-business on the provincial results please call (306) 757-0000 or email [email protected]. You may follow CFIB Saskatchewan on Twitter @cfibsk.
To arrange an interview with Ted Mallett, Vice-President & Chief Economist on the national results please contact Milena Stanoeva at 647-464-2814 or [email protected]. You may also follow Ted on Twitter @cfibeconomics.
CFIB is Canada’s largest association of small and medium-sized businesses with 110,000 members (5,250 in Saskatchewan) across every sector and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.