Small-business confidence dips in Newfoundland and Labrador, CFIB says

Small-business confidence in Newfoundland and Labrador declined in August, according to the latest Business Barometer from the Canadian Federation of Independent Business.

The province was among four provinces where short-term business confidence fell during the month, alongside Manitoba, Prince Edward Island and Alberta. Despite the decline, Newfoundland and Labrador remained above the 50-point threshold, which indicates that businesses expecting stronger performance outnumber those anticipating weaker conditions.

Nationally, the CFIB's long-term optimism index, based on expectations for the next 12 months, was virtually unchanged at 57.6 in August. Short-term optimism, based on the outlook for the next three months, fell by about five points to 52.4.

The results suggest that while Canadian small-business owners continue to expect relatively positive conditions over the longer term, concerns about the immediate business environment have increased.

The CFIB also reported that the overall state of business health remained virtually unchanged for a third consecutive month, with the balance of opinion sitting at 19.

Cost pressures remained a significant concern. The average price increase planned by small businesses held steady at 2.7 per cent in August, while planned wage increases edged up to 2.5 per cent.

Insufficient demand remained the most commonly cited constraint on business and production expansion, identified by 48 per cent of small and medium-sized businesses. The measure has declined for a third consecutive month.

Product input and raw material costs remained a major concern for 42 per cent of businesses, while fuel costs ranked third among constraints. The CFIB said fuel-cost concerns have continued to decline since reaching a peak in April.

Hiring intentions also remained weak nationally. Fifteen per cent of businesses said they planned to reduce full-time staffing, compared with 13 per cent planning to increase staffing.