Business Barometer: Confidence up again in May

Canada's small business optimism increased by another point and a half in May, bringing the Canadian Federation of Independent Business’s (CFIB) Business Barometer® to the 66.0 mark, the best level in two and a half years.

“Nationally, the Index has now recovered its loses from the resource price crunch of late 2014,” said Ted Mallett, Chief Economist at CFIB. “However, improvement was narrowly based regionally, largely coming from the West, and seasonal factors likely contributed to improvements in the Atlantic provinces.”

British Columbia (69.4) saw another increase in May, climbing to top spot in the country, while strong improvements Alberta (61.9) and Manitoba (66.4) helped bolster the national condfidence level. There was some pick-up in the Atlantic region, with Newfoundland & Labrador (45.3) and Prince Edward Island (67.9) making gains, though Nova Scotia (64.4) and New Brunswick (60.2) saw a slight fall back. Ontario (68.2) and Quebec (65.0) saw small slips, while Saskatchewan (49.1) saw a sharp decline.

Industry results are in line with past trends, showing relative buoyancy with financial, professional and healthcare services all above the 70 mark. Manufacturing (68.9) and hospitality (67.4) are also running above average. Businesses in agriculture, natural resources and construction are not as upbeat, but within historical norms.

“Other business health indicators continue to be positive,” added Mallett. “Employment plans are normal for this time of year and we’re closing in on the post-recession peak for business owners reporting that their businesses are in good shape.”

The report is available on the CFIB website.