Businesses feeling a little better in May
The index of small business confidence has not been this high in Alberta since July of last year
By Rob Roach, ATB Economics 26 May 2023 1 min read
Business confidence in Alberta improved for the fourth month in a row in May.
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.
The long-term index in Alberta has gone from 51.3 in January to 57.3 in May or about 2.5 points below the historical average (2000 to 2023). The survey was conducted between May 3 and May 10 as the wildfire situation in Alberta was getting worse and worse.
The index has not been this high in Alberta since July of last year when it came in at 59.6.
Nationally, the index also improved, going from 51.2 to start the year to 56.4 in May or about 5 points below the historical average.
The 12-month index in May was lowest in Quebec at 48.8 and highest in Prince Edward Island at 75.0.
Based on a 3-month outlook, the CFIB’s short-term optimism index for Alberta also improved, rising from 51.2 in April to 54.5 in May.
Nationally, the short-term index barely budged, rising 0.1 points to 53.5.
*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. An index level near 65 normally indicates that the economy is growing at its potential.
Answer to the previous trivia question: Babe Ruth hit his 714th (and final) home run on May 25, 1935 at Forbes Field in Pittsburgh, Pennsylvania.
Today’s trivia question: Who was the first president of the Edmonton Board of Trade?