Business Barometer: Confidence among entrepreneurs up in January

Small business optimism rebounded in January, but it is not quite back to levels we had seen July through November last year. CFIB's Business Barometer® Index rose 1.7 points to 64.0 this month, clawing back about half of December's losses.

The gains were mainly the result of a 2.5-point gain in Ontario (to 65.4), which is once again posting optimism levels above the national average. Perspectives in Quebec (56.2) also improved, but businesses there remain the country's least upbeat. Nationwide figures, however, masked notable declines in business sentiment in the four Western Provinces. Overall, the most optimistic business owners are in British Columbia (71.8) and Newfoundland & Labrador (68.1).

Sector profiles remain pretty tightly bunched around the overall average, which is normally a positive sign. However, the important consumer sectors of retail and hospitality are below the mid line.

Seasonally influenced future hiring plans have moved sharply upward, similar to the patterns seen last year. One-in-four businesses plan to take on more fulltime staff in the next few months, compared to 8 per cent who plan to cut back. Pricing and wage plans continue to trend higher, rising to 1.6 per cent and 1.7 per cent respectively on an annualized basis.

This report has been prepared by Ted Mallett, Vice-President & Chief Economist at the Canadian Federation of Independent Business is available in its entirety at http://www.cfib-fcei.ca/cfib-documents/rr3319.pdf.