Canada’s small business optimism index remained stable in July after taking a dip in June.
Provincial picture
Overall, there were little changes at the provincial level in July and long-term optimism levels exceeded 50 in every province. Prince Edward Island and Alberta led in optimism, while Saskatchewan ranked last, despite gaining 2.2 points. Quebec saw a similar increase, standing at 53.4, while Ontario dropped slightly to 51.0.
Sectoral picture
The long-term index remained stable in most sectors in July. Agriculture, transportation, natural resources, and retail registered optimism levels below 50. Optimism is especially low in agriculture as the sector continues its downward trend, currently sitting below 40. Small business owners in retail are slightly more optimistic, the index having risen 4.5 points in July.
Labour market indicators
Full-time staffing plans remained stable, with only 20% of SMEs planning to hire, while 17% are planning layoffs. Both indicators rose by 3 points in July.
Inflation indicator
Average price and wage increase plans for the next 12 months remained unchanged in July, sitting at 3.3% and 2.9%, respectively.
This is an excerpt from the CFIB’s report.