St. John’s, March 30, 2017 – According to the latest Business Barometer survey results released by the Canadian Federation of Independent Business (CFIB), small business optimism in Newfoundland and Labrador dropped in the first quarter of 2017. The provincial Business Barometer Index reached 42.2 in March 2017 compared to 47.7 in December 2016.
A mere eight per cent of respondents are planning to add full-time staff, while 30 per cent expect to cut staff in the next three months. In terms of their view about the general state of the economy, 32 per cent of entrepreneurs characterized it as “good” in March, while 21 per cent of respondents described it as “bad”.
Insufficient domestic demand was identified by 49 per cent of respondents as the biggest challenge for small firms in Newfoundland and Labrador. Eighty-one per cent consider tax and regulatory costs to be the largest cost constraint.
The national Business Barometer Index held steady in March (62.9). Across Canada, entrepreneurs in Nova Scotia (65.9) were the most optimistic about the economy and the future prospects for their business, followed by Quebec (65.7), Ontario (65.6), British Columbia (64.9), Manitoba (64.5), New Brunswick (63.8), Prince Edward Island (58.6), Saskatchewan (56.3), Alberta (55.5), and Newfoundland and Labrador (42.2).
About the Business Barometer: Measured on a scale of 0 and 100, an index level above 50 means owners expecting their businesses’ performance to be stronger in the next year outnumber those expecting weaker performance. According to past results, index levels normally range between 65 and 75 when the economy is growing at its potential. March 2017 findings are based on 730 responses, collected from a stratified random sample of CFIB members, to a controlled-access web survey. Data reflect responses received through March 20. Findings are considered accurate to +/- 3.6 per cent 19 times in 20.