Toronto, June 30, 2016 – Canada’s small business confidence rebounded two points in June to reach 60.0, its highest mark in just over a year.
“We’re seeing improvements in several key indicators including an increase in new orders and a pick up in the state of accounts receivable,” said Ted Mallett, Canadian Federation of Independent Business (CFIB) chief economist. “June also saw a big drop-off in the proportion of business owners expressing concerns about the level of consumer demand. However, employment plans continue to be modest for the time of year.”
On a scale between 0 and 100, an index 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.
British Columbia gained two points in June, hitting 69.3, the highest confidence score in the country. Alberta’s confidence continued to rise, climbing eight points to 42.5. Saskatchewan rose to 54.8, while Manitoba held steady at 57.8. Ontario cooled slightly, dropping four points to 61.5, while Quebec gained a point to 61.6. Newfoundland and Labrador’s confidence stabilized in June, rising one point to 45.8. Nova Scotia slipped for the sixth consecutive month to 61.5. New Brunswick saw an eight-point leap to 64.9. Prince Edward Island dropped seven points to 68.0.
The natural resources sector remains the weakest in the country, followed by construction and transportation. Health and education services is the most optimistic sector followed by finance, insurance and real estate, wholesale and manufacturing.
June, 2016 findings are based on 743 responses, collected from a stratified random sample of CFIB members, to a controlled-access web survey. Data reflect responses received through June 20. Findings are considered accurate to +\- 3.6 per cent 19 times in 20.
To arrange an interview with Ted Mallett please contact Ryan Mallough at 416-222-8022, 647-464-2814 or [email protected].
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members across every sector and region.