Calgary, September 26, 2024 – Alberta small business confidence for the next three months has dropped heading into the fall. The short-term optimism index has decreased by 1.9 points in Alberta, while the long-term index increased marginally, rising 0.3 points in September, according to the latest Canadian Federation of Independent Business (CFIB) Business Barometer®.
Despite the increase, the 12-month index remains below the province’s historical average of 57.1, currently at 55.9. The long-term index remained below its historical average for every month this year except July. Meanwhile, the 3-month confidence index stands at 48.9 points, suggesting business owners don’t expect conditions to improve for the remainder of the year.
“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, 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 has become increasing troubling for business owner since the start of the summer and is the top factor limiting sales or production growth, negatively impacting over half (52%) of Alberta small businesses. Additionally, 74% of Alberta small businesses report taxes and regulatory costs as their top cost constraint, followed by insurance costs (69%) and wage costs (67%).
“The news isn’t all bad as labour shortages are an issue for far fewer Alberta businesses than earlier in the year,” added Bradlee Whidden. “We encourage shoppers to support local this fall and for governments to do what they can to support small businesses, including reducing taxes.”
For media enquiries or interviews, please contact:
Bradlee Whidden
Policy Analyst, Western Canada
587-971-8933
bradlee.whidden@cfib.ca
Methodology:
September Business Barometer®: September findings are based on 191 responses from a stratified random sample of CFIB members to a controlled-access web survey. Data reflect responses received from September 3-16. Findings are statistically accurate to +/- 7.1 per cent, 19 times in 20. Every new month, the entire series of indicators is recalculated for the previous month to include all survey responses received in that previous month. Measured on a scale between 0 and 100, an index above 50 means owners expecting their business’s performance to be stronger over the next three or 12 months outnumber those expecting weaker performance. An index level near 65 normally indicates that the economy is growing at its potential.
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 95,000 members across every industry and region, including 10,000 in Alberta. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.