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Business confidence slides

In a reversal of trends, business confidence in Alberta slipped in July while the national outlook brightened.

In a reversal of trends, business confidence in Alberta slipped in July while the national outlook brightened.

The Canadian Federation of Independent Business (CFIB) reported on Thursday that its most recent monthly survey of small and medium-sized businesses found that optimism in Alberta had decreased 1.8 points to 66.8, on a 100-point scale. Meanwhile, the national index climbed nearly five points, to 64.2.

“The July results really tell two different stories,” said Richard Truscott, the CFIB’s Alberta director. “Nationally, the news is good, and clearly shows entrepreneurs across the country have become considerably more confident overall. Unfortunately, the index in Alberta is starting to drift a bit in the opposite direction.”

Truscott said the Alberta numbers can be attributed in part to the Southern Alberta floods.

But he also pointed out that the percentage of respondents who described the general state of their business’s health as “good” or “bad” held relatively steady in July — at 47 and eight per cent respectively.

Despite the soured mood of Alberta entrepreneurs, they were the second most optimistic group in the country. Saskatchewan led the way at 71.2, with Newfoundland and Labrador trailing Alberta at 66.7.

Next was Ontario (66.5), British Columbia (64.9), New Brunswick (58.9), Manitoba (58), Nova Scotia (57), Quebec (56.4) and Prince Edward Island (49.2).

Thirty-one per cent of Alberta’s independent business owners surveyed said they intended to hire full-time staff in the next three months, compared to only six per cent who predicted a reduction. Thirty-nine per cent identified the shortage of skilled labour as the biggest factor limiting growth.

The CFIB, which has more than 109,000 members, said index levels normally range between 65 and 75 when the economy is growing.