Business confidence riding high in Alberta
The index is the highest it has been since November 2014
By Rob Roach, ATB Economics 30 July 2021 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.
The index for Alberta reached 70.9 in July 2021, which is the highest it has been since November 2014.
The index got as low as 26.2 in March 2020 just after the pandemic was declared. The index jumped from 61.3 in May 2021 to 68.5 in June 2021, an increase of 11.8%.
The increase in confidence coincided with rising vaccination rates and announcements regarding the imminent re-opening of the Alberta economy.
The national index was sitting at 69.4% in July. Quebec posted the lowest index reading at 63.4% and Ontario the highest at 72.1%.
Despite the more positive outlook over the next 12 months, when asked about the current state of their business, only 23% of owners in Alberta said “good” in July whereas 30% said “bad.”
Nationally, the percentage of owners who described the general state of their business as good was 37% compared to 24% who said “bad.”
*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: Attributed to Leonardo da Vinci, Salvator Mundi (Latin for ''Savior of the World'') became the most expensive painting sold at a public auction when it was purchased for US$450.3 million in 2017.
Today’s trivia question: In what year was the Canadian Federation of Independent Business created?