Toronto, November 28, 2024 – The long-term small business confidence indicator reached 59.7 points in November, just shy of its historical average of 60, finds the latest Canadian Federation of Independent Business (CFIB)’s Monthly Business Barometer® survey.
“We’re finally seeing parts of the economy normalize, with some key indicators hinting at a broader economic recovery. Some hard-hit sectors have started displaying optimism levels close to their historical averages, and we’re also seeing improvements on the labour front. We will see how confidence will evolve next month, once the survey captures the impact of the announcement on US tariffs,” said Simon Gaudreault, CFIB’s chief economist and vice-president of research.
Most provinces have seen gains in confidence, mirroring the national trend. Across sectors, retail posted a slight increase in its long-term confidence level, reaching 55.9, a significant improvement compared to its 12-month confidence level (40.5) posted a year ago in November 2023.
Fewer small businesses were reporting challenges with low demand in November, but it remains the primary barrier to business and production growth for nearly half (49%) of small businesses. Although it has shrunk a bit recently, a significant share of businesses (44%) is still slowed down by skilled labour shortages.
Despite the improvement in some economic indicators, significant roadblocks remain on the road to a full recovery, with historically elevated shares of small businesses reporting challenges with various operating costs. Insurance remains the top cost constraint for a record high share of small businesses (71%) and CFIB will release more findings on the impact of skyrocketing insurance costs on small firms in an upcoming research report this December. Tax and regulatory expenses and wage costs also cause difficulties for 67% and 64% of businesses, respectively.
“Like consumers, small businesses are left feeling the permanent effects of high prices. So, while inflation is on the right path, there is still a ton of work to do on improving the cost of doing business,” said Andreea Bourgeois, CFIB’s director of economics. “Small Business Saturday is this weekend, and this is another reminder to explore and support your local businesses.”
For media enquiries or interviews, please contact:
Dariya Baiguzhiyeva, CFIB
647-464-2814
Public.affairs@cfib.ca
Methodology
November Business Barometer®: November findings are based on 872 responses from a stratified random sample of CFIB members, to a controlled-access web survey. Data reflect responses received from November 3 to November 13. Findings are statistically accurate to +/- 3.3%, 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.
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region. 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.
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