Small Business Confidence Falls For Fourth Straight Month
SAINT JOHN–Small business confidence fell for the fourth month in a row, according to the Canadian Federation of Independent Business (CFIB).
Its latest Business Barometer shows the three-month index fell by nearly eight points in July while the 12-month index fell by nearly seven points.
“Businesses are feeling the pressure of inflation right now, with both price and wage increase plans at all-time highs and growing concern over labour shortages and input costs, particularly fuel and energy,” Simon Gaudreault, the chief economist and vice-president of research at CFIB, said in a news release.
“Worse still, they don’t feel heard – only 16 percent believe the federal government understands the cost pressures they face, according to a recent CFIB survey. It’s no wonder they are feeling anxious about the future.”
Only 32 percent of businesses say they are in good shape, while 20 percent say they are in bad shape.
As well, full-time hiring plans continue to thin, as 20 percent of firms are looking to hire over the next three months, and 17 percent look to lay off staff.
CFIB also mentioned average price and wage increase plans are still coasting at historically high levels.
The major limitation on growth was labour shortages, but fuel and energy costs continue to be the top costs for small businesses.
Tim Herd is a reporter with Country 94 and 97.3 The Wave, Huddle content partners.
