OPTIMISM ON RISE AMONG BUSINESS OWNERS.

REGINA — Small business owners in Saskatchewan were more optimistic in February than they were in January, and the most likely to hire employees in the upcoming quarter, states the Canadian Federation of Independent Business’s monthly business barometer.

Optimism in Saskatchewan increased to 69.8 in February from an index of 66.7 in January and above the national index of 66.2, the CFIB said Thursday. “After several months of displaying even optimism, it is good to see Saskatchewan’s small business owners had a boost in optimism of more than three points in February, the second-most optimistic province after Alberta,” said Marilyn Braun-Pollon, CFIB’s vice-president for the Prairie region and agribusiness.

“THE JANUARY AND FEBRUARY RESULTS SUGGEST CANADIANS ARE SEEING MODEST, BUT WIDESPREAD ECONOMIC GROWTH.” TED MALLETT

In Saskatchewan, 57 per cent of small business owners rate their overall state of business as good — tied for the highest in Canada and well ahead of the national average of 40 per cent — while 33 per cent plan to increase full-time employment in the next three to four months — the highest in Canada, the report said.

The shortage of skilled labour (48 per cent) remains the main operating challenge in Saskatchewan, while major cost pressures for small business are wages (58 per cent), fuel and energy (51 per cent) and taxes and regulations (45 per cent).

Nationally, small businesses appear to be feeling more optimistic in early 2013, as the CFIB index rose a half a point to 66.2 in February. (An index level above 50 means owners who expect their operations to be stronger in the next year outnumber those who expecting a weaker performance.)

Small business owners in Alberta remain the most optimistic in Canada, with an index of 71, closely followed by Saskatchewan at 69.8 and Newfoundland and Labrador at 67.

Ontario (65.3), Nova Scotia (65.3), British Columbia (64.9), Quebec (64.6), Manitoba (63.4), and New Brunswick (62.2) are slightly below the national average while Prince Edward Island (54.1) saw a sharp drop in business confidence.

The CFIB also says fulltime hiring plans are better than seasonal norms, with 26 per cent of businesses expecting to hire more staff in the next few months, and only six per cent planning to cut back.

“For the first time in awhile, small business owners are reporting index numbers that indicate the economy is growing nearer its potential,” said CFIB chief economist and vicepresident Ted Mallett. “The January and February results suggest Canadians are seeing modest, but widespread economic growth.”

The February findings are based on 974 responses from a random sample of CFIB members, to a controlled-access web survey. the findings are statistically accurate to plus or minus 3.2 per cent 19 times in 20.