Small business upbeat for 2014, survey finds

Consumer confidence weakening

OTTAWA • Small-business owners in Canada appear to be warming to the idea of an improving economic performance next year.

But the consumers who are expected to purchase their products aren’t necessarily buying into that optimism.

Bank of Montreal’s semiannual confidence survey shows 62% of small-business owners expect growth to pick up in 2014. Another 55% said they anticipate their operations will grow next year, according to the survey released Monday, while only 6% see their business shrinking.

“Particularly noteworthy is the fact that the outlook for business next year is consistent across the country, so entrepre- neurs are feeling supported and encouraged regardless of where they’re located,” said Steve Murphy, BMO’s senior vice-president of commercial banking.

Signs of economic momentum in the United States — barring a disastrous outcome to the spending-and-debt-ceiling political standoff — and continuing improvement in Europe are providing some of that optimism in Canada.

Most business owners across the country share that upbeat outlook for ne x t

year, with 62% seeing improvement.

Of those surveyed in British Columbia, 66% said 2014 will be better for business, followed by Ontario with a reading of 65%. In Quebec, 60% were optimistic, while 59% were expecting an improved year in Atlantic Canada and 58% had the same response Alberta.

Benjamin Reitzes, senior economist at BMO Capital Markets, said: “An improving U.S. and global economic backdrop is expected to provide a lift to Canadian businesses and the economy as a whole.”

Meanwhile, consumers are more pessimistic about the outlook of the U.S. fiscal stalemate.

According to the Bloomberg Nanos Canadian confidence index, also released Monday, consumer sentiment deteriorated in the week ended Oct. 4 to 59.04 from 59.75 in the previous week

The Bloomberg Nanos index tracks consumers’ reading on the economy, job security, real estate and personal finances.

That is the first decline in the index since the week ended Aug. 30.

The two surveys come ahead of Friday’s dual reports from the Bank of Canada, which will show the confidence trend of top Canadian executives and lending levels of senior loan officers.

Also Friday, the key indicator of Canada’s economic confidence — employment data — will be released by Statistics Canada.