Alberta’s small business confidence at lowest level since 2009

Courtesy of Gazette Grande

• Confidence index drops another 1.4 points in April, down 5.7 points since February

The Canadian Federation of Independent Business (CFIB) released the results of its latest monthly Business Barometer survey at the end of April that shows another 1.4 point dip in Alberta’s small business confidence levels in April. As a result, the index has dropped to its lowest level since late 2009.


“There is likely one of two things happening here. It may mean the recent string of bad economic news about an under-performing global and national economy is finally starting to seep into the outlook of Alberta’s business owners. Alternatively, the drift downward may simply mean their optimism is flattening out to be more in line with where we are in the economic cycle,” says Richard Truscott, Alberta Director for CFIB.

Although there has been some slippage in confidence levels, the broad trends are still positive, with fairly healthy hiring intentions and low levels of concern about domestic demand. In April, 30 per cent of the province’s independent business owners said they are still hoping to hire full-time staff, down 2 points from March. Only six per cent were predicting a decline in their workforce.

The shortage of skilled labour remains the top challenge for small and medium-sized businesses in Alberta. Forty-two per cent of entrepreneurs said the shortage of skilled labour is the main operating challenge for their business, making it the top concern for 20 months in a row.

The national Business Barometer index dropped slightly in April to 62.4. At 69.1 points, Newfoundland is now home to the most optimistic entrepreneurs in the country, followed by British Columbia (67.6), Saskatchewan (67.2), Alberta (65.3) Quebec (64.1), and Ontario (63.2). Confidence was weakest in Manitoba (61.7), New Brunswick (58.1), PEI (55.1) and Nova Scotia (53.8).

About the Business Barometer: Measured on a scale between 0 and 100, an index level above 50 means owners expecting their businesses’ performance to be stronger in the next year outnumber those expecting weaker performance. According to past results, index levels normally range between 65 and 75 when the economy is growing. The April 2013 findings are based on 1,184 responses, collected from a stratified random sample of CFIB members, to a controlled-access web survey. Findings are statistically accurate to +/- 2.8 per cent 19 times in 20.

About CFIB: As Canada’s largest association of small and medium-sized businesses, CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes direction from more than 109,000 members in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.

Related link: CFIB website