Business confidence in Alberta rose again in May
Business expectations were the highest since last summer
By Rob Roach, ATB Economics 31 May 2022 1 min read
Based on a survey of its members, the Canadian Federation of Independent Business (CFIB) produces an index of small business confidence called the Business Barometer®. The barometer’s long-term index* is based on how businesses expect to be performing in 12 months.
Business confidence in Alberta in May was the highest since last summer with the 12-month index sitting at 65.2. This was the third monthly increase in a row. The highest reading since the pandemic began was in July 2021 when the index hit 70.9.
Things went in a different direction nationally, with the 12-month index down from 64.9 in April to 61.6 in May.
Business confidence improved in five provinces with Newfoundland and Labrador posting the largest monthly jump (+3.6 points to 67.2) and Ontario the largest drop (-3.8 points to 63.6).
Nationally, businesses in the information, arts and recreation category had the highest level of long-term confidence with an index reading of 81.1 in May. The lowest level of confidence was found among agriculture businesses with an index reading of just 43.7.
*Measured on a scale between 0 and 100, an index above 50 means owners expecting their business’s performance to be stronger in the next year outnumber those expecting weaker performance.
Answer to the previous trivia question: According to the International Monetary Fund, the Polynesian island nation of Tuvalu has the smallest economy in the world at just US$66 million of GDP in 2022.
Today’s trivia question: How many separately incorporated Federal Reserve Banks are there in the U.S. Federal Reserve System?