The CFIB Business Barometer took a hit in April, shedding almost half of the gains recorded in March. The index is now down to 60.5 after losing close to a point compared to last month. Although decent, today's reading is well below last year's level of 65.9.
Business confidence has been showing a seesaw trend for the past six months. Optimism is still lacking in the natural resources sector and is hardly more present in oil-producing provinces. The situation is likely to worsen in the coming months, especially with the anticipated decline in oil prices due to storage issues.
However, an upturn is in sight and positive changes lie ahead for small and medium businesses as the year progresses. External conditions already appear to be improving, as evidenced by lower transaction fees on credit cards effective since mid-April, which will generate significant savings for businesses and consumers.
The recent federal budget proposed a range of measures destined to benefit small businesses. Reduced taxation rates coming into effect as early as next year, lower EI premium rates beginning in 2017 and the small business job credit should all help to boost confidence among small and medium businesses.
