by MorinvilleNews.com Staff
Alberta’s small business confidence took a dip as the province headed into fall, reflecting the disappointment many business owners faced over the summer. According to the latest Canadian Federation of Independent Business (CFIB) Business Barometer, short-term optimism decreased by 1.9 points, while long-term confidence saw a slight increase of 0.3 points in September.
Despite this small uptick, the 12-month business confidence index remains below Alberta’s historical average of 57.1, sitting at 55.9 points. Apart from a brief rise in July, long-term optimism has remained under the average throughout the year. The short-term confidence index for the next three months stands at 48.9 points, signalling that many businesses do not anticipate improving conditions as 2024 draws to a close.
“Usually, we expect to see businesses more optimistic in the summer; however, this summer was disappointing for business owners expecting to see more customers walk through their doors,” said Bradlee Whidden, CFIB’s Policy Analyst for Western Canada. “Although falling inflation and decreasing interest rates have helped, low consumer demand is still weighing on Alberta’s economy.”
Insufficient demand emerged as a key issue over the summer, with 52% of Alberta’s small businesses identifying it as the main factor limiting sales or production growth. Additionally, 74% of businesses reported taxes and regulatory costs as their biggest financial burden, followed by insurance costs (69%) and wage expenses (67%).
“The news isn’t all bad, as labour shortages are an issue for far fewer Alberta businesses than earlier in the year,” Whidden added. “We encourage shoppers to support local this fall and for governments to do what they can to support small businesses, including reducing taxes.”
As Alberta’s businesses transition into fall, the challenges of summer continue to linger, with business owners looking for support from both consumers and the government to strengthen the local economy.
