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Small business confidence dips in P.E.I. and across Canada

Canadian Federation of Independent Business
Canadian Federation of Independent Business

CHARLOTTETOWN, P.E.I. – After the previous quarter’s strong optimism, businesses in Prince Edward Island have seen a significant decrease in confidence.

According to the Canadian Federation of Independent Business’ (CFIB) monthly Business Barometer, the P.E.I. index dropped to 63.0. However, it still remains several points above the national index.

The negative shift seen in September is widespread. Nationally, the index dropped another three points to land at 56.9 – its fourth consecutive monthly decline – with declines registered in all 10 provinces and 11 of 13 industry sectors.

Measured on a scale between zero and 100, an index level above 50 means owners expecting their business’s performance to be stronger in the next year outnumber those expecting weaker performance. An index level of between 65 and 70 means the economy is growing at its potential.

Business owners in Quebec remain the most optimistic, with a relatively healthy index of 70.9, while owners in the Maritimes are also more optimistic than the national average. Saskatchewan and Newfoundland and Labrador indexes sit at 50.9 and 52 respectively and Ontario’s is not that much better at 55. Manitoba and Alberta index levels are under the 58 mark, while British Columbia’s dropped below 60 for the first time since 2012.

The September 2017 findings are based on 810 responses, collected from a stratified random sample of CFIB members, to a controlled-access web survey. Data reflects responses received through Sept. 18.

 

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