The CFIB business barometer fell to 59.4 in June, from 60.6 in May. This marks the second biggest drop since the beginning of the year. With today's reading, national business confidence is down 4 points compared to the same period last year.
Adding to the softness exhibited in the two previous months. This is consistent with the weak start to the year exhibited by the Canadian economy. Indeed, real GDP contracted 0.6% (annualized) in the first quarter of 2015.
"Still, we expect business confidence to advance over the remainder of the year, as the Canadian economy gradually recovers from the impact of the drop in oil prices. Improving economic conditions in the United States should also bode well for non-energy exports in Canada, not to mention the expected boost from the low Canadian dollar over the near term. Businesses in the manufacturing sector are particularly well positioned to capitalize on these positive developments, as well as the tourism, transportation and wholesale trade industries." said TD Economics
