Small business confidence growing

CALGARY An uptick in oil prices has boosted optimism among small-business operators in Alberta, according to the Canadian Federation of Independent Business.

Its latest monthly survey found confidence rose 2.5 points in February, to 49.8, with operators in the resources sector appearing the most confident (69.2).

Twenty-seven per cent of those asked said they may reduce staff during the next three months, down three points from January. Twelve per cent are looking to hire.

“It appears the worst of the recession is behind us, but despite a fragile recovery the provincial government is still aggressively moving ahead with carbon taxes, minimum wage hikes and changes to employment rules,” Amber Ruddy, the CFIB’s Alberta director, said in a statement Thursday.

Almost three-quarters of respondents cited fuel and energy costs as their biggest cost constraint.

Overall, the general view of business owners remained negative, with 30 per cent of respondents saying the state of business health is bad. Only 20 per cent considered their business in good shape.

Nationally, the CFIB’s confidence index was up 2.7 points to 62.9, its highest level since January 2015, paced by Manitoba (66.9), Quebec (66.6) and PEI (66.1). Only Newfoundland & Labrador (43.6) rated lower than Alberta.

An index level over 50 means owners expecting their businesses’ performance to be stronger in the next year outnumber those expecting weaker performance, according to the CFIB’s metrics. Index levels range between 65 and 75 when the economy is growing at its potential, it said.