Recently, the Canadian Federation of Independent Business (CFIB) released its latest monthly Business Barometer®, which reveals optimism among small business owners in Saskatchewan ended the year on a stronger note, with an index of 56.3 in December, increasing from an index of 52.7 in November, now above the national average index of 55.7.
“It’s encouraging to see Saskatchewan small business confidence levels finish 2015 on a stronger note, with a multi-point gain of 3.6 points in December to an index of 56.3 from 52.7 in November. We hope this trend continues into 2016,” said Marilyn Braun-Pollon, CFIB’s Vice-President, Prairie and Agri-Business. “This is in stark contrast to Alberta’s index of 33.1, which is at an all-time record low for the second time in four months, and remains the only province below the national average.”
“Nationally, small business optimism in December has turned out to be the weakest month of the weakest year since the 2008-09 financial crisis,” said CFIB chief economist Ted Mallett. “The final Business Barometer® Index of 2015 registered only 55.7, a decline of three points from November’s tepid 58.7 and well under readings from the first half of the year when GDP growth was negative.”
Optimism dropped a point to 65.9 in British Columbia. Alberta set an all-time record low for the second time in four months, plummeting to 33.1, and remains by far the weakest in the country and the only province below the national average. Saskatchewan rose more than three points to 56.3, while Manitoba fell two points to 66.4. Ontario dropped to 59.9, just edging out Quebec, which saw a three point climb to 59.6. Newfoundland and Labrador’s business confidence bounced back from last month, climbing to 64.8. Nova Scotia picked up four points to reach 71.0, the highest mark in the country. New Brunswick’s confidence made a small jump to 61.8. Prince Edward Island fell two points to 61.1. Results and the full report are available at: www.cfib-fcei.ca/english/barometer
Highlights of the Saskatchewan Business Barometer for December:
• 49% of businesses in Saskatchewan say their overall state of business is good (38% nationally), 13% say it is bad (14% nationally).
• 15% of Saskatchewan businesses plan to increase full-time employment in the next 3-4 months (19% nationally) and 14% plan to decrease employment (15% nationally).
• Insufficient domestic demand remains the main operating challenge (37%); followed by the shortage of skilled labour (33%).
• Major cost pressures for small business include: tax, regulatory costs (51%), fuel, energy costs (46%), and wage costs (46%).
