The small business sector’s grapple with the COVID economy continued on through November. Business sentiment remained weak as a result of a stubborn virus and renewed operating restrictions in many regions. CFIB’s Business Barometer® Index, which is based on a 12-month forward expectation for business performance, registered 55.7—about two points better than the previous month, but well under what business owners had rated in the summer. The sentiment index based on their more immediate 3-month outlook didn’t budge, suggesting that many businesses can’t afford to think too far into the future.
Businesses are operating at 70.6 per cent capacity on average, which has essentially remained unchanged since August. About 20 per cent of businesses are operating flat out, but those are countered by the more than one-in-three running at less than 60 per cent or less of potential. The greatest difficulties remain centered in the hospitality and recreation sectors which are now back operating below 50% capacity and with underwhelming optimism levels. Sentiment index movements were mixed in the other sectors, but very modest in either direction...
Read the November Business Barometer®