The Business Development Bank of Canada (BDC) reports that confidence among small and medium sized enterprizes (SMEs) is increasing.
The Business Barometer index compiled by the Canadian Federation of Independent Business, which had shot up by 2.8 points in February, remained unchanged in March, indicating that SME owners’ confidence is still firm.
Looking at the various industries, we note that the index’s decline in the construction sector is counterbalanced by a sharp upturn in manufacturing. Given that industrial and regional breakdowns are volatile, it is advisable to view them through the lens of the six-month moving average.
In so doing, we note that SME confidence in the natural resources sector, which was severely shaken by the slump in crude oil prices, has been gradually moving up again over the past 12 months (graph).
Confidence is on an upwards path in many other sectors as well, including manufacturing and construction; this bodes well for jobs and investment.
- Source: BDC
