The Canadian Federation of Independent Business (CFIB) has released its latest monthly Business Barometer®, which reveals optimism among small business owners in Saskatchewan improved slightly in August with an index of 55.4, up 1.1 points from 54.3 in July. However, the index is still 5 points below the national average index of 60.6.
“Saskatchewan’s small businesses kept their optimism in check in August, with a one-point gain which put it just above the mid-fifties mark at 55.4 - but is still almost 10 points below the range of index levels (65-70) normally associated when the economy is growing at its potential,” said Marilyn Braun-Pollon, CFIB’s Vice-President, Prairie & Agri-business. “Hiring plans remained weak with 13 per cent of respondents planning on reducing staff in the next three months, compared to only 5 per cent planning to hire.”
Nationally, small business optimism also improved slightly in August, rising 2.8 index points to 60.6 on the CFIB’s Business Barometer®.
“It’s always good to see sentiment advance, but this is only the second time this year that business confidence has been above the 60-point mark,” said Simon Gaudreault, CFIB’s Senior Director of National Research. “Clearly, we still have room to improve, as reflected in this month’s weak hiring plans.”
Provincial results: Eight out of 10 provinces post higher results
Quebec (67.7) had the highest confidence level in the country, followed by Nova-Scotia (67.2), which also experienced the greatest increase in optimism. Prince Edward Island (66.7), Manitoba (62.1) and New Brunswick (61.3) also posted results above the national average. Ontario experienced a 3.9 index point increase but came in just below the national average with 59.9. Newfoundland & Labrador gained 3.2 index points, but was the least optimistic province at 53.2, followed by Alberta (54.3), British Columbia (55.3) and Saskatchewan (55.4).
Highlights of the Saskatchewan Business Barometer for August:
27% of businesses in Saskatchewan say their overall state of business is good (41% nationally); 17% say it is bad (10% nationally);
5% plan to increase employment in the next 3 months (16% nationally) and 13% of Saskatchewan businesses plan to decrease full-time employment (13% nationally);
Insufficient domestic demand is the main operating challenge (52%), followed by shortage of skilled labour (28%) and management skills, time constraints (18%);
Major cost pressures for small business include: tax, regulatory costs (70%), fuel, energy costs (56%), wage costs (51%), and insurance costs (50%).
