Categories: Economy

Canadian SMB Confidence At Record Lows

The Canadian Federation of Independent Business (CFIB)’s latest Business Barometer indicated that small business confidence dropped to a new historic low with the impacts of the coronavirus pandemic. The national confidence level dropped an additional 19 index points from last month’s following a 10-point decline earlier in March, according to an announcement.

Twenty percent of owners indicated their company is a good state, while 38 percent said their business is faring poorly. Hiring plans have stopped and only 5 percent of business owners plan to bring on full-time staff in the three months to come. Half are looking to have layoffs.

“March 2020 has turned out to be a month like no other in Canada’s economic history,” CFIB Vice President and Chief Economist Ted Mallett said in the announcement. “Small business sentiment has never been this low in the Business Barometer’s 32-year history, including during the 2008 and 1990 recessions.”

All verticals had a decline of optimism and dropped to levels in the range of 21 to 36 index points. The recreation and information space were the least optimistic, coming in at 21.6 index points. It was followed by manufacturing at 24.7 as well as financial services at 27.1. While they are still significantly under the norm, personal services, hospitality and retail registered the highest confidence levels among small and medium-sized businesses (SMBs).

Quebec experienced the highest decline in optimism in March, dropping 44.5 index points to 15.7. According to the announcement, “It is possibly due to the province taking quicker and more drastic measures than other provinces to halt the COVID-19 outbreak.” Alberta as well as Newfoundland and Labrador had the second and third lowest results. British Columbia and Saskatchewan, on the other hand, registered levels near the national average following declines of 16 points.

Manitoba and Ontario had slightly more positive results. New Brunswick and Nova Scotia both encountered strong declines in confidence but stayed more positive than the rest of the country.

Get our hottest stories delivered to your inbox.

Sign up for the PYMNTS.com Newsletter to get updates on top stories and viral hits.

——————————

LIVE PYMNTS ROUNDTABLE: MODERNIZING & SCALING FOR THE NEW NORMAL

The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.

Recent Posts

Google’s Search Engine Option Menu In Europe Gets DOJ Attention

Google’s move to provide a menu in Europe, which began showing up on new tablets as well as smartphones and…

12 mins ago

Brooks Brothers Readies For Bankruptcy

Brooks Brothers is in talks with banks about securing cash for a potential bankruptcy that could come within weeks, as…

20 mins ago

Today In Payments: Amazon’s PayFort To Boost Middle East Startups; Next Economic Stimulus Package Could Hit $1T

In today’s top news, Amazon is looking at buying a stake in India’s Bharti Airtel, and the Trump administration expects…

43 mins ago

China’s JD.com To Sell $4B In IPO Shares

Hong Kong technology company JD.com Inc. plans to sell up to $4.3 billion in shares in what is expected to…

2 hours ago

President Trump Inks PPP Loan Flexibility Legislation

As some firms grapple with meeting pivotal standards for loan forgiveness amid the pandemic, President Donald Trump inked a bill…

2 hours ago

France’s Fund Aims To Rescue Tech Startups From Takeovers

Looking for a way to protect technology companies from becoming prey to foreign buyers, France has created a fund to bail…

2 hours ago