Business owners more optimistic

For the first time in five months, optimism among Canada’s small- and medium-size businesses rose in September, finds the Canadian Federation of Independent Business (CFIB).

The Business Barometer index increased to 62.0, from 60.0 in August.

Read: Small biz confidence declines, again “Despite this good news, however, the index level still suggests Canada’s economy is growing at below-average rates,” says Ted Mallett, CFIB’s chief economist and vice president.

Measured on a scale of 0 to 100, an index level above 50 means owners that expect their businesses’ performance to be stronger in the next year outnumber those that expect weaker performance. Index levels normally range between 65 and 70 when the economy is growing.

Adds Mallet, “Thirty-six per cent of business owners reported shortages of skilled labour as a constraint on their business. This is the first time since the recession [these concerns] have exceeded worries about insufficient customer demand.”

Read: Small businesses struggling

Additional findings include:

• 18% of business owners plan to hire full-time staff in the next three or four months, compared to 12% who will cut back;
• 41% described their business to be in “good” shape, compared to 12% who said their business is “bad;”
• Entrepreneurs in Newfoundland and Labrador (75.0) are the most optimistic in the country, followed by Alberta (71.1), Saskatchewan (67.6), New Brunswick (62.8), Quebec (61.2), Ontario (60.1), British Columbia (59.0), Nova Scotia (55.6), Manitoba (54.7) and Prince Edward Island (44.6).

Read: Help small businesses through big issues

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.