Canada's small business optimism over the short and long-term changed very little in October. After the steep September drop, optimism on both fronts gained only very modestly and it hovers around levels seen at the beginning of the year.
CFIB's Business Barometer® Short-term Index, which is based on 3-month forward expectations for business performance, increased 2.3 points to 45.5. The long-term optimism index which is based on 12-month outlook gained 2.7 points and reached 60.5. Measured on a scale between 0 and 100, an index above 50 means owners expecting their business’s performance to be stronger in the next year outnumber those expecting weaker performance.
Most provinces have seen short-term business confidence further eroding slightly while Ontario and PEI are the only ones to have registered improvements. Alberta and BC registered the most important drops in optimism. Long-term business confidence has seen a mixed bag of reactions- testament to the high degree of uncertainty in the economy overall.
Most sectoral short-term outlooks worsened, with some exceptions such as professional services and arts and recreation. Long-term optimism is also mitigated but most sectors are trending downwards while retail, natural resources and professional services are showing some positive uptakes.
The full report from CFIB can be reviewed on their website.