The confidence level of small business operators in Alberta is at its lowest point in nearly 3 1/2 years, according to a recent survey conducted by the Canadian Federation of Independent Business (CFIB).
The national association said Thursday that its latest “Business Barometer” survey indicated a 1.4-point drop in Alberta’s small business confidence in April, pulling the index down to 65.3 out of a possible 100. The province’s confidence rating has been trending downward in recent months, going from 71 in February to 66.7 in March.
“There is likely one of two things happening here,” said Richard Truscott, CFIB’s Alberta director. “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.”
Across Canada, the Business Barometer index was 69.1 in Newfoundland, 67.6 in British Columbia, 67.2 in Saskatchewan, 64.1 in Quebec, 63.2 in Ontario, 61.7 in Manitoba, 58.1 in New Brunswick, 55.1 in Prince Edward Island and 53.8 in Nova Scotia.
The national average was 62.4.
The CFIB noted in a release that the broad trends in Alberta remain positive, with “fairly healthy hiring intentions and low levels of concern about domestic demand.” Thirty per cent of survey respondents said they plan to hire full-time staff, down two points from March, while six per cent anticipated a decline in their workforce.
Forty-two per cent also said that a shortage of skilled labour was their main operating challenge.