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CFIB Sees No Further Price and Wage Setting Moderation

CANADA
  • The CFIB Small Business Barometer (report here) saw minimal improvement in April for its 12-month ahead index, edging up from 55.3 to 55.7, although the non-headline 3-month ahead measure saw a stronger increase to 53.9 (+1.4pts).
  • Both remain low by historical standards though, about 5 and 7pts below seasonal levels.
  • Average future price increasing plans remained unchanged at 3.5% while average wage increase plans bumped back up from 3.0% to 3.3%.
  • “Full-time staffing plans are very moderate for this time of the year with 22% of businesses looking to hire while 14% are considering layoffs”. Only moderate hiring is likely related to labour shortages: shortage of skilled and semi-skilled labour are the top factors limiting production growth, with response shares still notably above historical averages.


Source: CFIB

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