Small business confidence dips in April

May 2, 2012, Toronto – Canada's small and mid-sized businesses
(SMEs) were a little less optimistic in April compared with the month
before, according to the Canadian Federation of
Independent Business (CFIB).

May 2, 2012, Toronto – Canada's small and mid-sized businesses
(SMEs) were a little less optimistic in April compared with the month
before, according to the Canadian Federation of
Independent Business (CFIB).

The 1.3-point drop in CFIB's Business Barometer Index to 66.4
gave back most of the big gains seen in the March survey findings.
Still, it is the second-best reading for the year and the first decline
registered in the index since August 2011, when international financial
markets seriously rattled economic confidence.

"For the most part, overall survey findings still point to stable
business conditions and a modestly growing economy," remarked Ted
Malett, chief economist and vice-president for CFIB. "The outlooks for
business owners both by sector and by region show very little relative
change in April, which is also another sign of general stability."

Business owners in Alberta (73.3) and Saskatchewan (72.1) continue to be
the most optimistic in the country. The surge in optimism in Ontario in
March was partially corrected in April — back to 67.1. Business sentiment
in New Brunswick (68.0), British Columbia (66.9), Newfoundland and
Labrador (61.9) and Prince Edward Island (62.2) improved. Optimism,
however, fell back markedly in Manitoba to 65.2, while also dropping
slightly in Nova Scotia (63.0) and Quebec (63.9).

"There was little change in the relative ranking of optimism by
industry," commented Mallett. "Manufacturers remain the most positive
by a significant amount; and confidence in the natural resources
industries, business services and the health and education sectors are
also above the average. Those in personal services and hospitality are
at the low end of the index—around the 60 mark."

Hiring plans were positive in April with 21 per cent of business owners
planning to increase full-time position over the next three or four
months, while only 12 per cent plan to reduce them.
"Increased confidence in hiring is certainly strongly influenced by
seasonal factors. The good news is that when compared to the results
from this time last year, they are better than in April 2011,"
concluded Mallett.

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 2012 findings are based on 807
responses, collected from a stratified random sample of CFIB members,
to a controlled-access web survey. Findings are statistically accurate
to +/- 3.4 per cent 19 times in 20.