Business confidence cooled in August
The long-term index fell for the third month in a row in Alberta
By Rob Roach, ATB Economics 29 August 2022 1 min read
With inflation, interest rates and labour shortages weighing on the economy, it’s not surprising that business confidence is down from where it was last summer.
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.
In Alberta, the long-term index fell for the third month in a row, falling from 68.8 in August 2021 to 56.7 in August 2022.
The national index was also down compared to last summer, falling from 67.1 in August 2021 to 53.5 in August 2022.
According to the CFIB, an index level near 65 normally indicates that the economy is growing at its potential.
*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.
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