YARMOUTH--Nova Scotia’s business barometer index has seen a third consecutive decrease since December 2015, reaching 65.8 in March, says the Canadian Federation of Independent Business. Despite the decrease, Nova Scotia businesses remain the most optimistic in the country, the CFIB says.
Full-time hiring intentions lost some ground and currently only 16 per cent of owners plan to add staff versus only six per cent expecting to cut back. Still, about half of business owners say their businesses are in good shape.
“Despite the slight reduction, Nova Scotia’s level of confidence from the small business sector has continued to outpace other provinces in Canada during challenging times within the national economy” said Nick Langley, director of provincial affairs for the CFIB in Nova Scotia. “The low Canadian dollar, low oil prices and the positive state of business are the major factors contributing to Nova Scotia’s strong small business confidence index.”
After a one-month pause, small business confidence across Canada resumed its downward track in March. CFIB's business barometer index fell another 2.4 points to land at 52.3—its lowest level since March 2009. The decline was widely spread, with indexes declining in nine of 10 provinces and nine of 13 industry sectors. Regionally, only British Columbia businesses registered an increase in sentiment, boosting their index to a modest 62.5.
Measured on a scale between 0 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.
March 2016 findings are based on 699 responses – collected from a stratified random sample of CFIB members – to a controlled-access web survey. Data reflect responses received through March 21. Findings are statistically accurate to +/- 3.7 per cent 19 times in 20.
