Slight drop in business optimism in New Brunswick

An index level above 50 means owners expecting their business’s performance to be stronger in the next year outnumber those expecting weaker performance.
 
“New Brunswick’s index shows that small business owners are more optimistic than the national average,” says the director of provincial affairs for the Canadian Federation of Independent Business in New Brunswick, Denis Robichaud. “However, that doesn’t mean that everything is positive. The general state of business health saw deterioration in February. Currently, only 39 per cent of owners are saying that their businesses are in good shape. That’s about a 10-point drop compared to the month of January,” adds Robichaud.
 
CFIB also notes little change in the short term hiring plans. About 18 per cent of business owners are planning to add personnel while only 7 per cent foresee layoffs.
 
“When looking at the data for February, we also notice that the shortage of skilled labour is becoming a growing concern for many entrepreneurs. In fact, 46 per cent of owners identify this issue as the main limitation on sales or production growth for their business. That’s a high proportion, and we certainly hope that our governments will address this critical issue in the near future,” says Robichaud.
 
Canada’s small business confidence, which saw steady erosion through 2015, was virtually unchanged in February. CFIB's Business Barometer® Index posted a barely perceptible 0.3-point monthly gain to 54.7, and it remains more than 12 points below its most recent October 2014 peak.
 
Business sentiment in the oil-producing provinces continues to pull downward on the national average. Alberta's index dropped further into record low territory at only 26.7, while Saskatchewan's and Newfoundland and Labrador's also fell to 52.4 and 53.5 respectively. Optimism in the remaining provinces, however, is noticeably better—led by Nova Scotia, Prince Edward Island and a resurgent business sector in Quebec—all with index levels above 65. Confidence in Ontario, British Columbia and Manitoba is more muted—with index values clustered around the 61 mark.
Read the full Business Barometer: http://cfib.ca/a6065e

February 2016 findings are based on 723 responses, collected from a stratified random sample of CFIB members, to a controlled-access web survey. Data reflect responses received through February 15. Findings are statistically accurate to +/- 3.6 per cent 19 times in 20.
 
For more information, contact Denis Robichaud, Director of Provincial Affairs, at 506-855-2526 or Ted Mallett, Chief Economist and Vice-president at 416-222-8022.
Business Barometer is a monthly publication of the CFIB and is a registered trademark.