CFIB’s Business Barometer® long-term index, which is based on 12-month forward expectations for business performance, remained unchanged in June at 56.3. The short-term optimism index, based on a 3-month outlook, dropped less than 1 point and sits at 51.6.
Provincial picture
Most provinces saw small improvements in long-term confidence or remained unchanged. Ontario’s drop of optimism of almost two points comes on the heels of a significant gain in the previous month, hence Canada’s largest province maintained a healthy confidence level at 56.0. The spread in long-term optimism among provinces narrowed gradually and currently ranges from 49.1 in New Brunswick to 56.8 in Prince Edwards Island.
Sectoral picture
Most sectors saw small improvements in long-term optimism in June. The largest gain in confidence was registered by firms in the hospitality sector (+4.1 points). The top three most optimistic sectors are still information, arts and recreation (62.9); financing, insurance and real estate (62.5); and professional services (59.0).
Inflation indicators
The average price increase indicator fell to 2.5, which is similar to the level registered back in April 2021. The average wage increase plans for the next 12 months also dropped to 2.5 in June, and it has hoovered around this level since August 2023.
This is an excerpt from the CFIB, the full report can be viewed here.